As far as the legal and political elements are worried, the entire movie market is impacted by the danger of piracy which might possibly bring about an unfavorable effect on the general profits of the movie market. Having stated that, copyright laws offer security to the film industry in regards to dissuading piracy.
While the political and legal environment uses defense to movie makers, globalization and improvement of technological elements have actually increased legal difficulties such as ease of piracy and breaking intellectual property rights.
It should be kept in mind that films become part of the show business while expenditure on any type of home entertainment is essentially an optional expenditure which is more or a luxury instead of a requirement. Nevertheless, we look at the contrast of the GDP trend with the pattern in demand for movies, we can see that the two are not straight proportional recommending that any modification in GDP growth does not always bring about a change in this particular home entertainment.
As far as the social-cultural elements are concerned, it needs to be kept in mind that the 70% of IMAX audiences are in between the ages of 19 and 56 which allows a great deal of variety when it comes to choosing a specific segment. Additionally with majority of the viewers being college or university students with a typical home earnings of $70,000, the purchasing power of the target audience reveals possibilities of increasing viewership.
With factors such as 'parents showing an interest in their children's option of home entertainment' and 'higher buying power in households' due to both moms and dads contributing towards the family earnings, we can see that the entertainment organisation has a lot of potential for market players.
While technological factors have contributed towards decreasing the expense of entertainment with the intro of multimedia, reality based entertainment, home theatres, cable television networks, the pressure on theatres has actually increased in term of making the theatre experience richer for consumers in order to make it more attractive than seeing motion pictures in the house. Furthermore, while developments have actually contributed towards the risk of 'piracy' they have actually also contributed towards ease of saving and dispersing movies.