As far as the political and legal factors are concerned, the whole film market is impacted by the hazard of piracy which might possibly bring about an unfavorable impact on the general revenue of the movie industry. Having stated that, copyright laws offer security to the movie industry in regards to preventing piracy.
While the legal and political environment uses protection to film makers, globalization and advancement of technological factors have increased legal obstacles such as ease of piracy and breaking intellectual property rights.
It should be noted that movies belong to the show business while expenditure on any kind of home entertainment is essentially an optional cost which is more or a high-end rather than a requirement. Nevertheless, we take a look at the contrast of the GDP trend with the pattern in demand for movies, we can see that the two are not straight proportional suggesting that any change in GDP growth does not necessarily bring about a change in this specific home entertainment.
As far as the social-cultural aspects are worried, it needs to be noted that the 70% of IMAX audiences are in between the ages of 19 and 56 which permits a great deal of variety when it concerns opting for a particular sector. Additionally with majority of the viewers being college or university students with a typical home income of $70,000, the acquiring power of the target audience shows possibilities of increasing viewership.
With elements such as 'parents revealing an interest in their children's option of home entertainment' and 'higher purchasing power in families' due to both moms and dads contributing towards the home earnings, we can see that the home entertainment company has a lot of potential for market gamers.
While technological factors have contributed towards reducing the cost of home entertainment with the introduction of multimedia, truth based 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 seeing movies in your home. Additionally, while innovations have actually contributed towards the threat of 'piracy' they have also contributed towards ease of saving and distributing films.