As far as the political and legal elements are concerned, the entire movie market is impacted by the risk of piracy which might potentially cause a negative effect on the general revenue of the movie industry. Having said that, copyright laws offer security to the movie industry in regards to dissuading piracy.
While the political and legal environment provides defense to film makers, globalization and improvement of technological aspects have actually increased legal difficulties such as ease of piracy and violating intellectual property rights.
It needs to be kept in mind that films become part of the entertainment industry while expenditure on any kind of entertainment is generally an optional cost which is more or a luxury rather than a necessity. Nevertheless, we take a look at the comparison of the GDP pattern with the pattern in demand for motion pictures, we can see that the two are not straight proportional suggesting that any modification in GDP growth does not necessarily bring about a change in this particular home entertainment.
As far as the social-cultural factors are worried, it ought to be kept in mind that the 70% of IMAX viewers are between the ages of 19 and 56 which enables a great deal of diversity when it concerns opting for a specific segment. Furthermore with bulk of the audiences being college or university students with an average family income of $70,000, the acquiring power of the target audience shows possibilities of increasing viewership.
With elements such as 'parents showing an interest in their kids's option of entertainment' and 'higher purchasing power in households' due to both parents contributing towards the household earnings, we can see that the entertainment service has a great deal of capacity for industry gamers.
While technological elements have actually contributed towards decreasing the cost of entertainment with the intro of multimedia, reality based home entertainment, house theatres, cable networks, the pressure on theatres has actually increased in regard to making the theatre experience richer for consumers in order to make it more appealing than seeing motion pictures at home. Additionally, while developments have actually contributed towards the risk of 'piracy' they have actually likewise contributed towards ease of saving and dispersing films.