As far as the political and legal factors are concerned, the entire movie market is affected by the danger of piracy which could potentially produce a negative influence on the general earnings of the movie industry. Having stated that, copyright laws provide protection to the movie market in regards to dissuading piracy.
While the political and legal environment provides defense to movie makers, globalization and advancement of technological elements have actually increased legal obstacles such as ease of piracy and violating copyright rights.
It should be noted that films become part of the entertainment industry while expenditure on any kind of home entertainment is essentially an optional expense which is more or a high-end rather than a need. We look at the comparison of the GDP trend with the pattern in need for films, we can see that the 2 are not straight proportional suggesting that any change in GDP growth does not necessarily bring about a modification in this particular entertainment.
As far as the social-cultural elements are concerned, it must be kept in mind that the 70% of IMAX viewers are between the ages of 19 and 56 which enables a great deal of diversity when it comes to going with a specific section. Additionally with bulk of the audiences being college or university students with a typical family income of $70,000, the acquiring power of the target market shows possibilities of increasing viewership.
With elements such as 'parents revealing an interest in their children's option of entertainment' and 'higher purchasing power in households' due to both parents contributing towards the family earnings, we can see that the entertainment organisation has a great deal of potential for market players.
While technological aspects have actually contributed towards lowering the cost of home entertainment with the intro of multimedia, reality based home entertainment, home theatres, cable television networks, the pressure on theatres has increased in regard to making the theatre experience richer for consumers in order to make it more appealing than seeing films in your home. Furthermore, while developments have contributed towards the risk of 'piracy' they have actually likewise contributed towards ease of keeping and distributing movies.