As far as the political and legal factors are concerned, the entire film market is impacted by the risk of piracy which could possibly bring about an unfavorable impact on the overall revenue of the movie market. Having stated that, copyright laws use protection to the movie market in regards to dissuading piracy.
While the legal and political environment offers protection to movie makers, globalization and advancement of technological aspects have actually increased legal challenges such as ease of piracy and breaching intellectual property rights.
It must be noted that motion pictures are part of the entertainment industry while expenditure on any form of home entertainment is essentially an optional cost which is more or a high-end instead of a need. We look at the comparison of the GDP trend with the trend in need for movies, we can see that the 2 are not straight 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 aspects are worried, it needs to be noted that the 70% of IMAX viewers are between the ages of 19 and 56 which allows a lot of variety when it concerns going with a particular sector. Furthermore with bulk of the audiences being college or university students with an average family earnings of $70,000, the purchasing power of the target market shows possibilities of increasing viewership.
With elements such as 'moms and dads revealing an interest in their children's choice of home entertainment' and 'greater purchasing power in households' due to both moms and dads contributing towards the family earnings, we can see that the home entertainment business has a great deal of potential for industry gamers.
While technological aspects have contributed towards lowering the expense of entertainment with the introduction of multimedia, reality based entertainment, home theatres, cable networks, the pressure on theatres has increased in regard to making the theatre experience richer for consumers in order to make it more appealing than enjoying motion pictures at home. Additionally, while developments have actually contributed towards the threat of 'piracy' they have likewise contributed towards ease of saving and dispersing movies.