As far as the political and legal elements are worried, the whole movie market is affected by the risk of piracy which might potentially cause a negative impact on the total income of the movie market. Having said that, copyright laws use protection to the movie industry in regards to discouraging piracy.
While the legal and political environment offers protection to film makers, globalization and development of technological factors have actually increased legal difficulties such as ease of piracy and violating copyright rights.
It must be noted that movies belong to the show business while expense on any kind of entertainment is basically an optional expenditure which is more or a luxury instead of a requirement. We look at the contrast of the GDP trend with the trend in need for films, we can see that the 2 are not straight proportional suggesting that any change in GDP development does not necessarily bring about a change in this specific home entertainment.
As far as the social-cultural elements are worried, it must be noted that the 70% of IMAX audiences are in between the ages of 19 and 56 which permits a great deal of diversity when it concerns opting for a specific sector. Furthermore with bulk of the viewers being college or university students with an average home income of $70,000, the buying power of the target audience shows possibilities of increasing viewership.
With elements such as 'moms and dads revealing an interest in their children's option of entertainment' and 'higher purchasing power in households' due to both moms and dads contributing towards the home earnings, we can see that the home entertainment business has a lot of capacity for industry players.
While technological aspects have contributed towards lowering the cost of entertainment with the intro of multimedia, reality based home entertainment, house theatres, cable television networks, the pressure on theatres has actually increased in regard to making the theatre experience richer for customers in order to make it more appealing than watching films in the house. Furthermore, while developments have actually contributed towards the risk of 'piracy' they have also contributed towards ease of storing and distributing films.