As far as the legal and political factors are worried, the entire film industry is impacted by the hazard of piracy which could possibly bring about a negative influence on the overall earnings of the film market. Having stated that, copyright laws offer security to the film market in regards to preventing piracy.
While the political and legal environment provides defense to movie makers, globalization and advancement of technological aspects have increased legal obstacles such as ease of piracy and violating copyright rights.
It must be noted that films become part of the entertainment industry while expense on any kind of entertainment is essentially an optional expense which is more or a high-end instead of a need. We look at the comparison of the GDP pattern with the pattern in demand for movies, 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 specific home entertainment.
As far as the social-cultural elements are worried, it must be kept in mind that the 70% of IMAX viewers are in between the ages of 19 and 56 which enables a great deal of variety when it pertains to opting for a particular segment. In addition with majority of the viewers being college or university students with an average family income of $70,000, the acquiring power of the target audience shows possibilities of increasing viewership.
With factors such as 'parents showing an interest in their children's option of entertainment' and 'higher buying power in households' due to both moms and dads contributing towards the household income, we can see that the entertainment company has a lot of capacity for industry players.
While technological aspects have contributed towards lowering the expense of home entertainment with the intro of multimedia, truth based home entertainment, house theatres, cable networks, the pressure on theatres has increased in regard to making the theatre experience richer for customers in order to make it more appealing than enjoying motion pictures at home. Furthermore, while innovations have actually contributed towards the danger of 'piracy' they have likewise contributed towards ease of keeping and distributing movies.