As far as the legal and political aspects are concerned, the entire film industry is impacted by the hazard of piracy which could possibly bring about an unfavorable impact on the general revenue of the film market. Having stated that, copyright laws offer protection to the movie industry in regards to 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 breaching copyright rights.
It should be noted that motion pictures are part of the entertainment industry while expenditure on any form of home entertainment is essentially an optional expense which is more or a high-end rather than a need. However, we look at the contrast of the GDP pattern with the pattern in demand for movies, we can see that the two are not directly proportional suggesting that any modification in GDP growth does not always bring about a modification in this particular entertainment.
As far as the social-cultural elements are concerned, it must be kept in mind that the 70% of IMAX viewers are in between the ages of 19 and 56 which enables a lot of diversity when it pertains to choosing a particular sector. In addition with bulk of the viewers being college or university students with an average household earnings of $70,000, the buying power of the target audience shows possibilities of increasing viewership.
With aspects such as 'moms and dads showing an interest in their children's option of entertainment' and 'greater buying power in homes' due to both moms and dads contributing towards the family income, we can see that the home entertainment business has a great deal of potential for market players.
While technological aspects have contributed towards lowering the cost of home entertainment with the introduction of multimedia, truth based home entertainment, home theatres, cable television networks, the pressure on theatres has increased in term of making the theatre experience richer for customers in order to make it more attractive than viewing movies at home. Furthermore, while innovations have actually contributed towards the threat of 'piracy' they have actually likewise contributed towards ease of saving and distributing films.