As far as the political and legal factors are concerned, the whole movie industry is impacted by the hazard of piracy which might possibly produce an unfavorable impact on the total revenue of the movie industry. Having said that, copyright laws use defense to the film market in regards to preventing piracy.
While the legal and political environment uses security to film makers, globalization and advancement of technological elements have increased legal difficulties such as ease of piracy and breaking intellectual property rights.
It should be noted that films are part of the entertainment industry while expenditure on any type of entertainment is essentially an optional expense which is more or a luxury rather than a requirement. Nevertheless, we take a look at the contrast of the GDP pattern with the pattern in demand for films, we can see that the two are not directly proportional recommending that any modification in GDP growth does not necessarily bring about a change in this specific home entertainment.
As far as the social-cultural factors are worried, it ought to be kept in mind that the 70% of IMAX viewers are in between the ages of 19 and 56 which enables a lot of diversity when it pertains to going with a particular sector. Furthermore with majority of the audiences being college or university students with an average household income of $70,000, the purchasing power of the target market reveals possibilities of increasing viewership.
With aspects such as 'parents revealing an interest in their children's choice of home entertainment' and 'greater buying power in families' due to both parents contributing towards the home income, we can see that the entertainment organisation has a lot of potential for industry gamers.
While technological aspects have actually contributed towards reducing the cost 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 watching movies in the house. Additionally, while developments have contributed towards the hazard of 'piracy' they have likewise contributed towards ease of storing and dispersing movies.