As far as the political and legal factors are worried, the entire film market is impacted by the risk of piracy which might potentially cause an unfavorable impact on the total earnings of the movie industry. Having said that, copyright laws provide security to the movie industry in regards to preventing piracy.
While the legal and political environment offers security to film makers, globalization and development of technological aspects have actually increased legal challenges such as ease of piracy and breaching intellectual property rights.
It ought to be noted that films are part of the entertainment industry while expense on any kind of home entertainment is basically an optional expenditure which is more or a high-end rather than a requirement. Nevertheless, we take a look at the contrast of the GDP pattern with the pattern in demand for films, we can see that the two are not directly proportional recommending that any modification in GDP development does not always cause a change in this specific home entertainment.
As far as the social-cultural aspects are concerned, it should be kept in mind that the 70% of IMAX viewers are in between the ages of 19 and 56 which permits a great deal of diversity when it concerns selecting a specific section. Furthermore with majority of the viewers being college or university students with an average home income of $70,000, the buying power of the target audience shows possibilities of increasing viewership.
With aspects such as 'moms and dads revealing an interest in their children's option of home entertainment' and 'higher buying power in families' due to both parents contributing towards the family income, we can see that the entertainment business has a lot of capacity for industry gamers.
While technological aspects have contributed towards reducing the cost of home entertainment with the introduction of multimedia, reality based entertainment, house theatres, cable networks, the pressure on theatres has increased in term of making the theatre experience richer for customers in order to make it more appealing than enjoying films in the house. Additionally, while innovations have actually contributed towards the threat of 'piracy' they have likewise contributed towards ease of saving and distributing movies.