As far as the legal and political elements are concerned, the entire film industry is affected by the hazard of piracy which might potentially bring about an unfavorable effect on the overall revenue of the film market. Having stated that, copyright laws offer defense to the film industry in regards to dissuading piracy.
While the political and legal environment uses security to film makers, globalization and advancement of technological factors have actually increased legal obstacles such as ease of piracy and violating intellectual property rights.
It ought to be kept in mind that films become part of the entertainment industry while expense on any form of entertainment is basically an optional expenditure which is more or a luxury instead of a requirement. However, we look at the comparison of the GDP trend with the trend in demand for motion pictures, we can see that the two are not directly proportional recommending that any change in GDP development does not always cause a change in this particular 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 variety when it concerns choosing a particular section. In addition with bulk of the viewers being college or university students with a typical home earnings of $70,000, the purchasing power of the target market 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 homes' due to both parents contributing towards the family income, we can see that the entertainment company has a lot of potential for market players.
While technological elements have contributed towards decreasing the expense of entertainment with the intro of multimedia, truth based entertainment, house theatres, cable networks, the pressure on theatres has actually increased in term of making the theatre experience richer for consumers in order to make it more attractive than enjoying movies in your home. Furthermore, while innovations have actually contributed towards the hazard of 'piracy' they have actually also contributed towards ease of keeping and distributing movies.