As far as the legal and political factors are worried, the whole movie industry is impacted by the risk of piracy which could possibly cause a negative influence on the overall earnings of the movie market. Having said that, copyright laws provide defense to the movie industry in regards to dissuading piracy.
While the political and legal environment provides protection to film makers, globalization and development of technological factors have actually increased legal obstacles such as ease of piracy and breaking copyright rights.
It must be kept in mind that motion pictures belong to the entertainment industry while expenditure on any kind of entertainment is essentially an optional cost which is more or a high-end instead of a need. We look at the contrast of the GDP trend with the trend in demand for motion pictures, we can see that the two are not straight proportional suggesting that any change in GDP development does not necessarily bring about a modification in this particular entertainment.
As far as the social-cultural elements are concerned, it should be kept in mind 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 going with a specific sector. Furthermore with bulk of the audiences being college or university students with an average home earnings of $70,000, the purchasing power of the target market reveals possibilities of increasing viewership.
With elements such as 'parents showing an interest in their children's choice of entertainment' and 'greater buying power in families' due to both moms and dads contributing towards the household income, we can see that the home entertainment company has a lot of capacity for industry players.
While technological factors have contributed towards reducing the cost of entertainment with the introduction of multimedia, truth based entertainment, house theatres, cable networks, the pressure on theatres has increased in regard to making the theatre experience richer for consumers in order to make it more appealing than seeing films in the house. Additionally, while innovations have actually contributed towards the hazard of 'piracy' they have actually likewise contributed towards ease of saving and distributing movies.