As far as the legal and political elements are concerned, the whole film industry is impacted by the risk of piracy which could possibly produce an unfavorable impact on the general profits of the movie market. Having stated that, copyright laws provide defense to the movie market in terms of preventing piracy.
While the legal and political environment uses protection to film makers, globalization and improvement of technological elements have actually increased legal difficulties such as ease of piracy and breaching intellectual property rights.
It must be noted that movies become part of the show business while expenditure on any form of entertainment is generally an optional expense 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 films, we can see that the two are not straight proportional suggesting that any modification in GDP growth does not necessarily cause a modification in this specific entertainment.
As far as the social-cultural aspects are concerned, it should be kept in mind that the 70% of IMAX audiences are between the ages of 19 and 56 which permits a great deal of diversity when it comes to choosing a specific segment. Furthermore with majority of the viewers being college or university students with an average family income of $70,000, the purchasing power of the target audience reveals possibilities of increasing viewership.
With elements such as 'moms and dads revealing an interest in their kids'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 factors have contributed towards reducing the expense of entertainment with the introduction of multimedia, truth based home entertainment, house theatres, cable networks, the pressure on theatres has actually increased in regard to making the theatre experience richer for customers in order to make it more attractive than watching motion pictures in the house. Furthermore, while developments have actually contributed towards the threat of 'piracy' they have actually likewise contributed towards ease of storing and dispersing movies.