As far as the political and legal aspects are worried, the whole movie market is affected by the risk of piracy which might potentially bring about an unfavorable influence on the total revenue of the film market. Having stated that, copyright laws provide protection to the movie industry in regards to discouraging piracy.
While the legal and political environment provides security to movie makers, globalization and development of technological elements have increased legal difficulties such as ease of piracy and violating copyright rights.
It ought to be noted that movies belong to the entertainment industry while expense on any kind of entertainment is generally an optional cost which is more or a luxury instead of a need. We look at the contrast of the GDP pattern with the pattern in demand for films, we can see that the 2 are not directly proportional suggesting that any modification in GDP growth does not necessarily bring about a change in this specific home entertainment.
As far as the social-cultural elements are worried, it must be kept in mind that the 70% of IMAX audiences are between the ages of 19 and 56 which enables a great deal of variety when it concerns opting for a specific segment. Additionally with bulk of the viewers being college or university students with an average family income of $70,000, the purchasing power of the target market reveals possibilities of increasing viewership.
With factors such as 'parents showing an interest in their kids's choice of home entertainment' and 'higher buying power in households' due to both parents contributing towards the home earnings, we can see that the entertainment company has a lot of capacity for industry gamers.
While technological factors have contributed towards decreasing the cost of entertainment with the introduction of multimedia, truth based entertainment, house theatres, cable television networks, the pressure on theatres has actually increased in regard to making the theatre experience richer for customers in order to make it more appealing than viewing movies in your home. In addition, while developments have contributed towards the threat of 'piracy' they have likewise contributed towards ease of storing and distributing movies.