As far as the legal and political aspects are worried, the entire film industry is affected by the hazard of piracy which could potentially produce an unfavorable impact on the overall income of the movie market. Having stated that, copyright laws offer protection to the film industry in regards to dissuading piracy.
While the political and legal environment provides defense to film makers, globalization and development of technological elements have actually increased legal difficulties such as ease of piracy and breaching copyright rights.
It must be kept in mind that movies become part of the entertainment industry while expense on any kind of entertainment is essentially an optional expense which is more or a luxury instead of a necessity. Nevertheless, we look at the contrast of the GDP pattern with the trend in demand for movies, we can see that the two are not directly proportional suggesting that any modification in GDP growth does not necessarily produce a change in this specific home entertainment.
As far as the social-cultural aspects are concerned, it ought to be kept in mind that the 70% of IMAX audiences are between the ages of 19 and 56 which allows a lot of variety when it pertains to going with a particular sector. Additionally with bulk of the audiences being college or university students with an average household income of $70,000, the buying power of the target audience reveals possibilities of increasing viewership.
With factors such as 'parents showing an interest in their kids's option of entertainment' and 'higher purchasing power in homes' due to both moms and dads contributing towards the household earnings, we can see that the entertainment business has a lot of capacity for market gamers.
While technological elements have contributed towards reducing the expense of home entertainment with the introduction of multimedia, truth based 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 films at home. Additionally, while developments have contributed towards the threat of 'piracy' they have likewise contributed towards ease of storing and dispersing films.