As far as the legal and political factors are worried, the entire movie industry is affected by the hazard of piracy which might possibly bring about an unfavorable impact on the general revenue of the movie industry. Having said that, copyright laws use security to the movie industry in terms of discouraging piracy.
While the legal and political environment provides protection to film makers, globalization and improvement of technological elements have actually increased legal obstacles such as ease of piracy and breaching intellectual property rights.
It ought to be kept in mind that films become part of the entertainment industry while expense on any form of entertainment is generally an optional expenditure which is more or a high-end instead of a necessity. Nevertheless, we look at the comparison of the GDP pattern with the pattern in demand for movies, we can see that the two are not straight proportional recommending that any modification in GDP growth does not necessarily produce a modification in this particular home entertainment.
As far as the social-cultural elements are concerned, it needs to be kept in mind that the 70% of IMAX audiences are in between the ages of 19 and 56 which permits a great deal of diversity when it pertains to going with a specific sector. In addition with bulk of the audiences being college or university students with a typical household earnings of $70,000, the purchasing power of the target audience shows possibilities of increasing viewership.
With aspects such as 'moms and dads revealing an interest in their children's choice of entertainment' and 'greater buying power in households' due to both parents contributing towards the family income, we can see that the entertainment business has a lot of potential for market gamers.
While technological elements have contributed towards lowering the expense of home entertainment with the introduction of multimedia, reality based home entertainment, house theatres, cable networks, the pressure on theatres has increased in regard to making the theatre experience richer for customers in order to make it more appealing than watching motion pictures in the house. Additionally, while developments have contributed towards the threat of 'piracy' they have also contributed towards ease of keeping and dispersing movies.