As far as the legal and political elements are worried, the whole film market is impacted by the risk of piracy which could potentially bring about a negative impact on the overall earnings of the movie industry. Having said that, copyright laws provide defense to the film market in terms of preventing piracy.
While the political and legal environment uses protection to movie makers, globalization and improvement of technological elements have increased legal challenges such as ease of piracy and breaching intellectual property rights.
It must be noted that films become part of the show business while expenditure on any form of home entertainment is essentially an optional expense which is more or a high-end instead of a requirement. However, we take a look at the contrast of the GDP trend with the trend in demand for motion pictures, we can see that the two are not straight proportional recommending that any modification in GDP growth does not always cause a modification in this particular home entertainment.
As far as the social-cultural aspects are worried, it ought to be kept in mind that the 70% of IMAX audiences are in between the ages of 19 and 56 which allows a lot of variety when it pertains to going with a particular section. In addition with majority of the viewers being college or university students with an average family earnings of $70,000, the acquiring power of the target audience shows possibilities of increasing viewership.
With aspects such as 'parents revealing an interest in their kids's option of entertainment' and 'higher buying power in homes' due to both parents contributing towards the household income, we can see that the home entertainment company has a great deal of potential for market players.
While technological elements have actually contributed towards reducing the cost of entertainment with the intro of multimedia, truth based entertainment, house theatres, cable television networks, the pressure on theatres has increased in regard to making the theatre experience richer for customers in order to make it more attractive than viewing movies in your home. In addition, while developments have actually contributed towards the hazard of 'piracy' they have likewise contributed towards ease of saving and dispersing movies.