As far as the political and legal elements are worried, the entire film market is impacted by the risk of piracy which might possibly cause a negative effect on the overall earnings of the film industry. Having stated that, copyright laws provide security to the film industry in terms of discouraging piracy.
While the political and legal environment offers security to movie makers, globalization and advancement of technological factors have increased legal challenges such as ease of piracy and violating intellectual property rights.
It ought to be noted that motion pictures become part of the show business while expense on any kind of home entertainment is basically an optional expenditure which is more or a luxury instead of a need. We look at the contrast of the GDP trend with the pattern in demand for films, we can see that the 2 are not straight proportional recommending that any modification in GDP development does not always bring about a change in this particular entertainment.
As far as the social-cultural aspects are worried, it ought to be noted that the 70% of IMAX audiences are in between the ages of 19 and 56 which enables a lot of diversity when it comes to opting for a specific section. In addition with bulk of the viewers being college or university students with an average family income of $70,000, the buying power of the target audience reveals possibilities of increasing viewership.
With elements such as 'parents showing an interest in their children's choice of home entertainment' and 'greater purchasing power in homes' due to both moms and dads contributing towards the household income, we can see that the home entertainment company has a great deal of capacity for industry players.
While technological factors have actually contributed towards lowering the cost of home entertainment with the intro of multimedia, reality based home entertainment, home 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 enjoying motion pictures in your home. Furthermore, while developments have actually contributed towards the danger of 'piracy' they have likewise contributed towards ease of saving and distributing movies.