As far as the political and legal aspects are worried, the whole movie industry is impacted by the risk of piracy which could possibly cause a negative effect on the general profits of the film industry. Having stated that, copyright laws offer protection to the film market in terms of discouraging piracy.
While the political and legal environment offers protection to film makers, globalization and development of technological factors have increased legal difficulties such as ease of piracy and violating intellectual property rights.
It should be noted that motion pictures belong to the entertainment industry while expenditure on any type of home entertainment is generally an optional expenditure which is more or a high-end instead of a necessity. We look at the comparison of the GDP trend with the pattern in demand for motion pictures, we can see that the 2 are not directly proportional suggesting that any change in GDP development does not necessarily bring about a change in this particular home entertainment.
As far as the social-cultural factors are concerned, it ought to be noted that the 70% of IMAX audiences are in between the ages of 19 and 56 which permits a lot of variety when it concerns choosing a specific sector. Additionally with bulk of the viewers being college or university students with an average family earnings of $70,000, the acquiring power of the target audience shows possibilities of increasing viewership.
With factors such as 'moms and dads showing an interest in their kids's choice of entertainment' and 'greater buying power in homes' due to both parents contributing towards the family earnings, we can see that the home entertainment business has a lot of potential for industry players.
While technological factors have actually contributed towards lowering the expense of entertainment with the introduction of multimedia, truth based home entertainment, home theatres, cable television networks, the pressure on theatres has actually increased in regard to making the theatre experience richer for customers in order to make it more appealing than enjoying films at home. Furthermore, while innovations have actually contributed towards the danger of 'piracy' they have actually likewise contributed towards ease of storing and distributing films.