As far as the legal and political factors are worried, the entire movie industry is affected by the threat of piracy which could potentially produce an unfavorable effect on the total earnings of the film market. Having said that, copyright laws use protection to the film market in terms of discouraging piracy.
While the legal and political environment uses security to film makers, globalization and development of technological aspects have actually increased legal obstacles such as ease of piracy and breaking intellectual property rights.
It should be kept in mind that motion pictures belong to the show business while expense on any kind of home entertainment is basically an optional expenditure which is more or a luxury rather than a requirement. We look at the comparison of the GDP trend with the pattern in demand for motion pictures, we can see that the 2 are not straight proportional recommending that any change in GDP development does not necessarily bring about a modification in this specific home entertainment.
As far as the social-cultural elements are concerned, it needs to be kept in mind that the 70% of IMAX viewers are in between the ages of 19 and 56 which allows a great deal of diversity when it concerns opting for a specific sector. Additionally with majority of the audiences being college or university students with an average family income of $70,000, the acquiring power of the target market reveals possibilities of increasing viewership.
With elements such as 'parents revealing an interest in their children's choice of home entertainment' and 'greater buying power in households' due to both moms and dads contributing towards the household earnings, we can see that the entertainment organisation has a lot of capacity for market gamers.
While technological elements have contributed towards reducing the cost of entertainment with the intro of multimedia, truth based home entertainment, home theatres, cable television networks, the pressure on theatres has actually increased in term of making the theatre experience richer for customers in order to make it more attractive than enjoying motion pictures at home. Furthermore, while developments have contributed towards the threat of 'piracy' they have likewise contributed towards ease of storing and distributing movies.