As far as the political and legal elements are worried, the entire movie market is affected by the hazard of piracy which could possibly bring about a negative impact on the general revenue of the movie industry. Having stated that, copyright laws provide security to the movie market in terms of preventing piracy.
While the political and legal environment uses protection to movie makers, globalization and advancement of technological elements have increased legal obstacles such as ease of piracy and violating intellectual property rights.
It must be noted that motion pictures are part of the show business while expenditure on any type of entertainment is generally an optional expense which is more or a luxury rather than a need. We look at the comparison of the GDP pattern with the trend in demand for movies, we can see that the 2 are not straight proportional suggesting that any modification in GDP development does not necessarily bring about a modification in this specific home entertainment.
As far as the social-cultural elements are worried, it ought to be noted that the 70% of IMAX viewers are in between the ages of 19 and 56 which permits a great deal of variety when it comes to opting for a particular section. Additionally with bulk of the audiences being college or university students with a typical household earnings of $70,000, the acquiring power of the target market reveals possibilities of increasing viewership.
With aspects such as 'parents revealing an interest in their children's choice of entertainment' and 'greater purchasing power in homes' due to both moms and dads contributing towards the home earnings, we can see that the home entertainment business has a great deal of potential for market players.
While technological factors have contributed towards decreasing the expense of entertainment with the introduction of multimedia, reality based home entertainment, house theatres, cable television networks, the pressure on theatres has actually increased in regard to making the theatre experience richer for customers in order to make it more appealing than watching motion pictures in your home. Additionally, while innovations have actually contributed towards the risk of 'piracy' they have actually likewise contributed towards ease of keeping and distributing movies.