As far as the political and legal factors are worried, the entire movie market is impacted by the hazard of piracy which could potentially cause an unfavorable effect on the total earnings of the movie market. Having said that, copyright laws provide security to the film market in regards to dissuading piracy.
While the political and legal environment provides protection to film makers, globalization and advancement of technological elements have actually increased legal challenges such as ease of piracy and violating intellectual property rights.
It needs to be noted that films become part of the entertainment industry while expenditure on any kind of entertainment is essentially an optional expenditure which is more or a high-end rather than a requirement. We look at the contrast of the GDP trend with the pattern in demand for motion pictures, we can see that the two are not straight proportional suggesting that any change in GDP development does not always bring about a change in this particular entertainment.
As far as the social-cultural elements are concerned, it should be kept in mind that the 70% of IMAX audiences are in between the ages of 19 and 56 which allows a great deal of variety when it pertains to choosing a particular section. In addition with majority of the viewers being college or university students with a typical household income of $70,000, the acquiring power of the target market shows possibilities of increasing viewership.
With elements such as 'moms and dads showing an interest in their children's option of entertainment' and 'greater buying power in families' due to both parents contributing towards the home income, we can see that the home entertainment organisation has a great deal of capacity for market gamers.
While technological aspects have actually contributed towards reducing the expense of entertainment with the introduction of multimedia, reality based home entertainment, home theatres, cable networks, the pressure on theatres has actually increased in regard to making the theatre experience richer for consumers in order to make it more appealing than seeing motion pictures in your home. Furthermore, while innovations have contributed towards the danger of 'piracy' they have actually also contributed towards ease of storing and dispersing films.