As far as the legal and political factors are concerned, the whole film industry is impacted by the danger of piracy which might potentially produce an unfavorable effect on the general revenue of the movie market. Having stated that, copyright laws provide security to the movie market in terms of dissuading piracy.
While the legal and political environment uses defense to film makers, globalization and advancement of technological elements have actually increased legal difficulties such as ease of piracy and breaching copyright rights.
It needs to be kept in mind that movies belong to the entertainment industry while expense on any type of entertainment is generally an optional expenditure which is more or a luxury instead of a need. We look at the comparison of the GDP pattern with the trend in demand for motion pictures, we can see that the 2 are not directly proportional suggesting that any modification in GDP growth does not necessarily bring about a change in this specific entertainment.
As far as the social-cultural elements are worried, it needs to be noted that the 70% of IMAX audiences are between the ages of 19 and 56 which enables a lot of diversity when it concerns opting for a specific segment. Additionally with majority of the audiences being college or university students with an average family earnings of $70,000, the purchasing power of the target market shows possibilities of increasing viewership.
With aspects such as 'moms and dads revealing an interest in their kids's choice of home entertainment' and 'greater purchasing power in homes' due to both moms and dads contributing towards the home income, we can see that the home entertainment company has a great deal of capacity for industry players.
While technological aspects have contributed towards reducing the cost of home entertainment with the intro of multimedia, reality based home entertainment, house theatres, cable television networks, the pressure on theatres has actually increased in term of making the theatre experience richer for customers in order to make it more attractive than viewing motion pictures at home. In addition, while developments have actually contributed towards the hazard of 'piracy' they have actually also contributed towards ease of keeping and dispersing movies.