As far as the political and legal factors are worried, the entire movie market is impacted by the risk of piracy which could possibly produce an unfavorable impact on the general profits of the movie market. Having stated that, copyright laws provide defense to the movie market in terms of discouraging piracy.
While the political and legal environment provides protection to film makers, globalization and advancement of technological factors have increased legal obstacles such as ease of piracy and violating copyright rights.
It should be kept in mind that movies are part of the show business while expense on any type of entertainment is essentially an optional expense which is more or a high-end rather than a necessity. We look at the comparison of the GDP trend with the pattern in demand for movies, we can see that the 2 are not directly proportional recommending that any modification in GDP development does not always bring about a change in this specific home entertainment.
As far as the social-cultural factors are worried, it should be noted that the 70% of IMAX viewers are between the ages of 19 and 56 which allows a great deal of diversity when it comes to opting for a particular sector. In addition with bulk of the audiences being college or university students with an average family income of $70,000, the purchasing power of the target audience reveals possibilities of increasing viewership.
With factors such as 'moms and dads revealing an interest in their kids's option of entertainment' and 'greater buying power in homes' due to both parents contributing towards the family income, we can see that the home entertainment business has a lot of capacity for industry players.
While technological factors have actually contributed towards reducing the expense of home entertainment with the intro of multimedia, reality based home 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 attractive than seeing films at home. Furthermore, while innovations have actually contributed towards the danger of 'piracy' they have actually likewise contributed towards ease of storing and dispersing movies.