As far as the legal and political factors are concerned, the whole movie industry is affected by the hazard of piracy which could potentially produce a negative impact on the general revenue of the film industry. Having stated that, copyright laws use protection to the film industry in terms of preventing piracy.
While the legal and political environment offers protection to movie makers, globalization and improvement of technological factors have actually increased legal obstacles such as ease of piracy and breaking copyright rights.
It should be kept in mind that movies become part of the show business while expenditure on any form of entertainment is generally an optional cost which is more or a luxury instead of a requirement. We look at the contrast of the GDP trend with the pattern in demand for films, we can see that the two are not straight proportional recommending that any modification in GDP growth does not necessarily bring about a modification in this particular home entertainment.
As far as the social-cultural aspects are concerned, it needs to be noted that the 70% of IMAX viewers are in between the ages of 19 and 56 which permits a lot of diversity when it concerns opting for a specific sector. Additionally with majority of the viewers being college or university students with a typical home income of $70,000, the buying power of the target market reveals possibilities of increasing viewership.
With factors such as 'moms and dads showing an interest in their children's option of home entertainment' and 'greater buying power in families' due to both moms and dads contributing towards the home income, we can see that the home entertainment company has a lot of potential for market gamers.
While technological aspects have contributed towards reducing the cost of entertainment with the introduction of multimedia, truth based entertainment, home theatres, cable television networks, the pressure on theatres has increased in regard to making the theatre experience richer for consumers in order to make it more attractive than seeing motion pictures at home. In addition, while developments have actually contributed towards the threat of 'piracy' they have actually likewise contributed towards ease of storing and dispersing films.