As far as the legal and political factors are worried, the whole film industry is affected by the hazard of piracy which might possibly cause an unfavorable effect on the general profits of the movie market. Having said that, copyright laws offer defense to the movie market in terms of discouraging piracy.
While the legal and political environment offers defense to movie makers, globalization and advancement of technological aspects have increased legal obstacles such as ease of piracy and breaking intellectual property rights.
It needs to be noted that films become part of the entertainment industry while expenditure on any type of entertainment is essentially an optional expenditure which is more or a high-end rather than a necessity. Nevertheless, we take a look at the contrast of the GDP pattern with the pattern in demand for movies, we can see that the two are not directly proportional suggesting that any modification in GDP growth does not necessarily bring about a modification in this specific entertainment.
As far as the social-cultural elements are concerned, it needs to be kept in mind that the 70% of IMAX viewers are between the ages of 19 and 56 which allows a lot of diversity when it concerns choosing a particular section. In addition with bulk of the viewers being college or university students with an average home income of $70,000, the acquiring power of the target market reveals possibilities of increasing viewership.
With factors such as 'parents showing an interest in their kids's option of entertainment' and 'greater purchasing power in families' due to both moms and dads contributing towards the home earnings, we can see that the entertainment organisation has a great deal of capacity for industry gamers.
While technological aspects have contributed towards reducing the cost of entertainment with the intro of multimedia, truth based entertainment, home 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 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 saving and dispersing movies.