As far as the political and legal factors are concerned, the whole movie market is impacted by the danger of piracy which could possibly produce a negative influence on the overall profits of the film market. Having stated that, copyright laws use security to the movie industry in terms of preventing piracy.
While the political and legal environment uses security to film makers, globalization and advancement of technological aspects have actually increased legal obstacles such as ease of piracy and violating copyright rights.
It needs to be kept in mind that films become part of the entertainment industry while expenditure on any type of entertainment is basically an optional expense which is more or a luxury rather than a need. We look at the contrast of the GDP trend with the trend in demand for films, we can see that the 2 are not directly proportional recommending that any change in GDP development does not always bring about a modification in this particular home entertainment.
As far as the social-cultural factors are worried, it ought to be kept in mind that the 70% of IMAX audiences are between the ages of 19 and 56 which enables a lot of diversity when it pertains to choosing a particular section. Furthermore with bulk of the viewers being college or university students with a typical family income of $70,000, the purchasing power of the target audience reveals possibilities of increasing viewership.
With elements such as 'moms and dads revealing an interest in their kids's choice of home entertainment' and 'higher purchasing power in homes' due to both parents contributing towards the family income, we can see that the entertainment service has a lot of potential for market gamers.
While technological aspects have contributed towards lowering the expense of entertainment with the intro of multimedia, truth based home 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 attractive than seeing films in your home. Furthermore, while innovations have actually contributed towards the risk of 'piracy' they have also contributed towards ease of saving and distributing films.