As far as the political and legal factors are concerned, the entire film market is affected by the risk of piracy which could potentially produce an unfavorable impact on the overall earnings of the film market. Having stated that, copyright laws use defense to the film industry in terms of preventing piracy.
While the legal and political environment offers protection to film makers, globalization and development of technological elements have actually increased legal obstacles such as ease of piracy and violating intellectual property rights.
It must be kept in mind that movies belong to the entertainment industry while expense on any kind of entertainment is generally an optional expenditure which is more or a luxury instead of a requirement. We look at the contrast of the GDP trend with the pattern in demand for motion pictures, we can see that the 2 are not directly proportional recommending that any change in GDP growth does not necessarily bring about a modification in this particular home entertainment.
As far as the social-cultural elements are worried, it must be kept in mind that the 70% of IMAX audiences are between the ages of 19 and 56 which permits a great deal of variety when it concerns going with a particular sector. In addition with bulk of the viewers being college or university students with an average home earnings of $70,000, the purchasing power of the target market reveals possibilities of increasing viewership.
With factors such as 'moms and dads showing an interest in their children's choice of home entertainment' and 'greater purchasing power in families' due to both moms and dads contributing towards the family earnings, we can see that the entertainment organisation has a lot of potential for market players.
While technological factors have contributed towards lowering the cost of entertainment with the intro 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 attractive than watching movies in your home. Furthermore, while innovations have contributed towards the hazard of 'piracy' they have also contributed towards ease of saving and dispersing movies.