As far as the legal and political factors are concerned, the whole film market is impacted by the risk of piracy which could potentially produce an unfavorable impact on the total revenue of the film industry. Having said that, copyright laws offer security to the film market in regards to preventing piracy.
While the legal and political environment uses protection to movie makers, globalization and development of technological aspects have actually increased legal difficulties such as ease of piracy and breaching copyright rights.
It needs to be kept in mind that motion pictures are part of the show business while expenditure on any form of entertainment is generally an optional expenditure which is more or a luxury instead of a need. We look at the comparison of the GDP trend with the trend in need for motion pictures, we can see that the 2 are not straight proportional suggesting that any change in GDP development does not always bring about a change in this particular entertainment.
As far as the social-cultural factors 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 pertains to choosing a particular sector. Additionally with majority of the viewers being college or university students with an average family earnings of $70,000, the buying power of the target market shows possibilities of increasing viewership.
With aspects such as 'moms and dads revealing an interest in their kids's option of entertainment' and 'greater purchasing power in homes' due to both parents contributing towards the household earnings, we can see that the entertainment organisation has a great deal of potential for industry gamers.
While technological elements have contributed towards lowering the cost of home entertainment with the introduction of multimedia, reality based entertainment, home theatres, cable television networks, the pressure on theatres has increased in regard to making the theatre experience richer for consumers in order to make it more attractive than watching motion pictures in your home. In addition, while developments have actually contributed towards the hazard of 'piracy' they have also contributed towards ease of storing and dispersing movies.