As far as the political and legal elements are worried, the entire movie market is impacted by the hazard of piracy which could potentially cause an unfavorable influence on the total revenue of the movie industry. Having said that, copyright laws use security to the film market in terms of discouraging piracy.
While the political and legal environment provides protection to movie makers, globalization and improvement of technological elements have increased legal obstacles such as ease of piracy and breaking copyright rights.
It must be noted that motion pictures belong to 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 need. Nevertheless, we take a look at the comparison of the GDP trend with the pattern in demand for films, we can see that the two are not directly proportional recommending that any modification in GDP growth does not always cause a modification in this particular home entertainment.
As far as the social-cultural elements are concerned, it ought to be kept in mind that the 70% of IMAX audiences are in between the ages of 19 and 56 which allows a lot of diversity when it pertains to selecting a specific section. Additionally with majority of the viewers being college or university students with a typical family income of $70,000, the buying power of the target market reveals possibilities of increasing viewership.
With elements such as 'moms and dads showing an interest in their children's option of entertainment' and 'greater buying power in households' due to both parents contributing towards the family earnings, we can see that the home entertainment organisation has a great deal of capacity for market gamers.
While technological aspects have contributed towards decreasing the cost of home entertainment with the intro of multimedia, truth based entertainment, home theatres, cable networks, the pressure on theatres has increased in term of making the theatre experience richer for consumers in order to make it more appealing than seeing films at home. Additionally, while developments have actually contributed towards the threat of 'piracy' they have actually likewise contributed towards ease of saving and dispersing movies.