As far as the legal and political factors are worried, the whole film market is impacted by the hazard of piracy which might potentially bring about an unfavorable influence on the general income of the film market. Having said that, copyright laws use defense to the film industry in terms of preventing piracy.
While the legal and political environment provides protection to movie makers, globalization and advancement of technological factors have actually increased legal challenges such as ease of piracy and breaking intellectual property rights.
It ought to be noted that movies belong to the entertainment industry while expenditure on any form of home entertainment is essentially an optional expense which is more or a luxury instead of a necessity. Nevertheless, we look at the comparison of the GDP trend with the trend in demand for movies, we can see that the two are not directly proportional recommending that any modification in GDP development does not always produce a modification in this particular entertainment.
As far as the social-cultural elements are worried, it needs to be noted that the 70% of IMAX audiences are in between the ages of 19 and 56 which enables a lot of diversity when it concerns opting for a specific sector. Furthermore with bulk of the audiences being college or university students with a typical family income of $70,000, the purchasing power of the target market reveals possibilities of increasing viewership.
With aspects such as 'moms and dads showing an interest in their children's choice of entertainment' and 'higher purchasing power in families' due to both parents contributing towards the home earnings, we can see that the entertainment organisation has a lot of capacity for market gamers.
While technological factors have contributed towards decreasing the expense of 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 customers in order to make it more appealing than viewing movies in the house. Furthermore, while innovations have actually contributed towards the danger of 'piracy' they have likewise contributed towards ease of keeping and distributing films.