As far as the legal and political factors are worried, the entire film market is impacted by the risk of piracy which might potentially bring about a negative effect on the total revenue of the film industry. Having said that, copyright laws offer protection to the film market in terms of preventing piracy.
While the legal and political environment offers security to film makers, globalization and improvement of technological factors have increased legal obstacles such as ease of piracy and breaking copyright rights.
It must be noted that films become part of the entertainment industry while expense on any form of home entertainment is basically an optional expense which is more or a luxury instead of a requirement. We look at the comparison of the GDP trend with the pattern in need for films, 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 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 concerns going with a specific sector. Additionally with bulk of the viewers 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 factors such as 'parents revealing an interest in their children's option of home entertainment' and 'higher buying power in families' due to both moms and dads contributing towards the household income, we can see that the entertainment organisation has a great deal of potential for industry players.
While technological aspects have contributed towards lowering the cost of entertainment with the introduction of multimedia, truth based entertainment, house theatres, cable television 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 enjoying films in your home. Additionally, while innovations have actually contributed towards the danger of 'piracy' they have actually also contributed towards ease of saving and distributing films.