As far as the political and legal elements are concerned, the entire movie industry is affected by the risk of piracy which could potentially cause an unfavorable effect on the overall earnings of the movie industry. Having stated that, copyright laws provide protection to the film industry in terms of dissuading piracy.
While the legal and political environment uses security to movie makers, globalization and improvement of technological factors have actually increased legal difficulties such as ease of piracy and breaking copyright rights.
It needs to be kept in mind that films are part of the show business while expenditure on any kind of home entertainment is basically an optional cost which is more or a high-end instead of a requirement. We look at the comparison of the GDP trend with the pattern in demand for films, we can see that the two are not directly proportional recommending that any change 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 ought to be kept in mind that the 70% of IMAX audiences are in between the ages of 19 and 56 which permits a great deal of diversity when it pertains to choosing a particular segment. In addition with bulk of the viewers being college or university students with a typical home earnings of $70,000, the acquiring power of the target market shows possibilities of increasing viewership.
With aspects such as 'moms and dads revealing an interest in their children's choice of entertainment' and 'greater purchasing power in homes' due to both moms and dads contributing towards the home income, we can see that the entertainment service has a great deal of potential for industry players.
While technological aspects have actually contributed towards decreasing the expense of home entertainment with the introduction 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 customers in order to make it more appealing than enjoying films at home. Furthermore, while innovations have contributed towards the risk of 'piracy' they have actually likewise contributed towards ease of saving and dispersing movies.