As far as the political and legal aspects are worried, the entire movie market is affected by the threat of piracy which could possibly cause an unfavorable influence on the total income of the movie market. Having said that, copyright laws use protection to the film market in terms of preventing piracy.
While the political and legal environment offers security to movie makers, globalization and advancement of technological aspects have actually increased legal obstacles such as ease of piracy and breaching copyright rights.
It needs to be kept in mind that films are part of the entertainment industry while expense on any form of home entertainment is generally an optional expenditure which is more or a high-end instead of a necessity. Nevertheless, we take a look at the comparison of the GDP trend with the trend in demand for movies, we can see that the two are not directly proportional suggesting that any change in GDP development does not always cause a change in this specific home entertainment.
As far as the social-cultural aspects are worried, it must be kept in mind that the 70% of IMAX audiences are in between the ages of 19 and 56 which enables a great deal of diversity when it concerns choosing a particular section. Additionally with bulk of the viewers being college or university students with a typical family earnings of $70,000, the acquiring power of the target market shows possibilities of increasing viewership.
With factors such as 'moms and dads showing an interest in their kids's option of entertainment' and 'greater purchasing power in families' due to both parents contributing towards the home income, we can see that the home entertainment service has a great deal of capacity for industry players.
While technological aspects have actually contributed towards reducing the expense of home entertainment with the introduction of multimedia, truth based entertainment, home 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 viewing movies in your home. In addition, while developments have actually contributed towards the danger of 'piracy' they have actually also contributed towards ease of storing and dispersing movies.