As far as the political and legal elements are worried, the whole movie industry is impacted by the risk of piracy which might potentially produce a negative impact on the total earnings of the film market. Having said that, copyright laws provide security to the movie market in regards to dissuading piracy.
While the political and legal environment offers defense to movie makers, globalization and advancement of technological factors have increased legal difficulties such as ease of piracy and breaking intellectual property rights.
It must be noted that films belong to the entertainment industry while expenditure on any form of home entertainment is generally an optional expense which is more or a luxury instead of a need. We look at the comparison of the GDP pattern with the pattern in need for films, we can see that the 2 are not straight proportional recommending that any modification in GDP development does not necessarily bring about a modification in this particular home entertainment.
As far as the social-cultural factors are worried, it must be kept in mind that the 70% of IMAX audiences are between the ages of 19 and 56 which permits a great deal of diversity when it concerns opting for a specific segment. Additionally with majority of the viewers being college or university students with an average household income of $70,000, the purchasing power of the target market shows possibilities of increasing viewership.
With factors such as 'moms and dads revealing an interest in their children's option of entertainment' and 'greater purchasing power in families' due to both parents contributing towards the family earnings, we can see that the home entertainment organisation has a lot of capacity for market players.
While technological factors have actually contributed towards decreasing the cost of entertainment with the intro of multimedia, reality based entertainment, home theatres, cable television networks, the pressure on theatres has actually increased in regard to making the theatre experience richer for consumers in order to make it more attractive than enjoying motion pictures at home. In addition, while innovations have contributed towards the hazard of 'piracy' they have actually also contributed towards ease of saving and dispersing films.