As far as the legal and political factors are concerned, the whole movie industry is affected by the danger of piracy which could potentially bring about a negative influence on the total revenue of the movie industry. Having said that, copyright laws provide security to the film market in terms of discouraging piracy.
While the legal and political environment provides security to film makers, globalization and improvement of technological factors have actually increased legal obstacles such as ease of piracy and violating intellectual property rights.
It needs to be kept in mind that films are part of the entertainment industry while expense on any type of entertainment is basically an optional expense which is more or a high-end rather than a necessity. We look at the comparison of the GDP pattern with the pattern in demand for films, we can see that the two are not straight proportional suggesting that any modification in GDP development does not necessarily bring about a change in this particular entertainment.
As far as the social-cultural elements are concerned, it ought to 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 going with a specific section. Furthermore with majority of the viewers being college or university students with a typical household earnings of $70,000, the buying power of the target market reveals possibilities of increasing viewership.
With elements such as 'moms and dads revealing an interest in their children's choice of home entertainment' and 'greater buying power in households' due to both parents contributing towards the family income, we can see that the home entertainment company has a lot of potential for market gamers.
While technological elements have actually contributed towards reducing the expense of home entertainment with the intro of multimedia, reality 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 attractive than enjoying films at home. In addition, while innovations have actually contributed towards the danger of 'piracy' they have also contributed towards ease of saving and dispersing movies.