As far as the legal and political elements are worried, the whole movie industry is impacted by the threat of piracy which could possibly bring about an unfavorable effect on the general income of the movie industry. Having said that, copyright laws use protection to the film market in terms of dissuading piracy.
While the political and legal environment provides protection to movie makers, globalization and advancement of technological elements have actually increased legal obstacles such as ease of piracy and breaching intellectual property rights.
It must be kept in mind that motion pictures are part of the show business while expenditure on any form of entertainment is essentially an optional expenditure which is more or a luxury instead of a necessity. We look at the comparison of the GDP pattern with the pattern in demand for motion pictures, we can see that the 2 are not straight proportional recommending that any modification in GDP development does not always bring about a change in this particular home entertainment.
As far as the social-cultural elements are worried, it must be noted that the 70% of IMAX audiences are between the ages of 19 and 56 which permits a great deal of diversity when it pertains to choosing a particular sector. Furthermore with majority of the viewers being college or university students with a typical household 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 homes' due to both moms and dads contributing towards the household income, we can see that the entertainment service has a lot of potential for market players.
While technological aspects have actually contributed towards reducing the expense of entertainment with the introduction of multimedia, reality based entertainment, home theatres, cable television networks, the pressure on theatres has increased in term of making the theatre experience richer for consumers in order to make it more attractive than watching movies at home. Furthermore, while developments have contributed towards the danger of 'piracy' they have actually also contributed towards ease of saving and distributing movies.