As far as the political and legal factors are worried, the whole movie industry is affected by the threat of piracy which might possibly bring about a negative impact on the general revenue of the movie industry. Having stated that, copyright laws offer defense to the movie industry in regards to dissuading piracy.
While the political and legal environment uses defense to film makers, globalization and advancement of technological factors have actually increased legal challenges such as ease of piracy and breaching copyright rights.
It ought to be kept in mind that motion pictures become part of the show business while expense on any kind of home entertainment is basically an optional expenditure which is more or a high-end rather than a requirement. However, we look at the contrast of the GDP trend with the trend in demand for motion pictures, we can see that the two are not directly proportional suggesting that any change in GDP growth does not always bring about a modification in this particular entertainment.
As far as the social-cultural aspects are concerned, it must be kept in mind that the 70% of IMAX viewers are between the ages of 19 and 56 which enables a lot of variety when it pertains to choosing a particular section. Additionally with majority of the audiences being college or university students with a typical home earnings of $70,000, the purchasing power of the target market reveals possibilities of increasing viewership.
With aspects such as 'moms and dads showing an interest in their children's option of home entertainment' and 'higher purchasing power in families' due to both moms and dads contributing towards the family income, we can see that the entertainment company has a lot of potential for industry players.
While technological elements have actually contributed towards lowering the expense of entertainment with the intro of multimedia, truth based home entertainment, house theatres, cable networks, the pressure on theatres has actually increased in term of making the theatre experience richer for consumers in order to make it more attractive than seeing movies in your home. Additionally, while developments have actually contributed towards the risk of 'piracy' they have actually likewise contributed towards ease of keeping and distributing movies.