As far as the legal and political factors are concerned, the entire film market is affected by the risk of piracy which could possibly produce an unfavorable effect on the total income of the movie market. Having stated that, copyright laws offer security to the film market in regards to dissuading piracy.
While the political and legal environment provides defense to film makers, globalization and development of technological elements have actually increased legal obstacles such as ease of piracy and breaching intellectual property rights.
It should be kept in mind that films are part of the show business while expense on any kind of entertainment is generally an optional expenditure which is more or a luxury rather than a requirement. Nevertheless, we take a look at the contrast of the GDP trend with the pattern in demand for films, we can see that the two are not directly proportional recommending that any modification in GDP growth does not always cause a modification in this particular entertainment.
As far as the social-cultural factors are concerned, it ought to be noted that the 70% of IMAX viewers are between the ages of 19 and 56 which enables a great deal of diversity when it comes to opting for a particular sector. Additionally with bulk of the audiences being college or university students with a typical household income of $70,000, the acquiring power of the target audience reveals possibilities of increasing viewership.
With aspects such as 'parents revealing an interest in their children's option of home entertainment' and 'greater purchasing power in households' due to both moms and dads contributing towards the household income, we can see that the home entertainment service has a lot of potential for industry players.
While technological factors have contributed towards reducing the cost of home entertainment with the intro of multimedia, truth based home entertainment, home 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 enjoying movies in your home. In addition, while developments have contributed towards the danger of 'piracy' they have actually likewise contributed towards ease of storing and dispersing movies.