As far as the legal and political aspects are worried, the whole movie market is affected by the threat of piracy which might possibly produce an unfavorable influence on the general earnings of the movie market. Having stated that, copyright laws offer protection to the film market in terms of discouraging piracy.
While the political and legal environment offers defense to film makers, globalization and advancement of technological factors have increased legal challenges such as ease of piracy and breaching intellectual property rights.
It ought to be kept in mind that motion pictures belong to the show business while expenditure on any form of entertainment is basically an optional cost which is more or a luxury rather than a need. We look at the comparison of the GDP pattern with the trend in need for motion pictures, we can see that the 2 are not directly proportional recommending that any modification in GDP growth does not necessarily bring about a change in this particular home entertainment.
As far as the social-cultural factors 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 permits a lot of diversity when it comes to opting for a specific sector. Furthermore with majority of the viewers being college or university students with a typical household income of $70,000, the acquiring power of the target audience reveals possibilities of increasing viewership.
With aspects such as 'moms and dads showing an interest in their kids's choice of home entertainment' and 'greater purchasing power in households' due to both moms and dads contributing towards the household earnings, we can see that the home entertainment company has a lot of potential for industry gamers.
While technological aspects have contributed towards lowering the expense of home entertainment with the intro of multimedia, reality based home entertainment, house theatres, cable networks, the pressure on theatres has actually increased in term of making the theatre experience richer for consumers in order to make it more appealing than seeing motion pictures at home. Additionally, while innovations have actually contributed towards the danger of 'piracy' they have actually likewise contributed towards ease of keeping and distributing movies.