As far as the political and legal factors are concerned, the whole movie industry is impacted by the hazard of piracy which might possibly bring about a negative effect on the general profits of the movie market. Having stated that, copyright laws use security to the film market in regards to preventing piracy.
While the political and legal environment uses defense to movie makers, globalization and development of technological aspects have increased legal difficulties such as ease of piracy and violating intellectual property rights.
It ought to be noted that motion pictures are part of the entertainment industry while expenditure on any form of home entertainment is basically an optional expense which is more or a luxury rather than a necessity. Nevertheless, we look at the contrast of the GDP pattern with the trend in demand for films, we can see that the two are not straight proportional recommending that any change in GDP growth does not always cause a modification in this particular entertainment.
As far as the social-cultural aspects are worried, it ought to be noted that the 70% of IMAX viewers are in between the ages of 19 and 56 which allows a great deal of variety when it comes to choosing a particular section. Additionally with majority of the viewers being college or university students with an average home earnings of $70,000, the acquiring power of the target audience shows possibilities of increasing viewership.
With factors such as 'parents revealing an interest in their children's choice of entertainment' and 'greater buying power in families' due to both moms and dads contributing towards the family earnings, we can see that the entertainment organisation has a lot of potential for industry gamers.
While technological elements have actually contributed towards reducing the expense of entertainment with the introduction 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 viewing motion pictures in the house. In addition, while innovations have contributed towards the threat of 'piracy' they have likewise contributed towards ease of storing and dispersing films.