As far as the political and legal aspects are worried, the entire film market is impacted by the threat of piracy which could possibly cause a negative influence on the total revenue of the film industry. Having stated that, copyright laws provide defense to the movie market in regards to discouraging piracy.
While the legal and political environment provides defense to movie makers, globalization and improvement of technological aspects have increased legal obstacles such as ease of piracy and breaching intellectual property rights.
It needs to be noted that movies are part of the show business while expenditure on any form of entertainment is basically an optional expenditure which is more or a luxury rather than a necessity. We look at the contrast of the GDP pattern with the trend in demand for movies, we can see that the two are not directly proportional recommending that any change in GDP development does not necessarily bring about a modification in this specific home entertainment.
As far as the social-cultural elements are concerned, it must be noted that the 70% of IMAX viewers are in between the ages of 19 and 56 which permits a lot of variety when it pertains to going with a particular segment. In addition with majority of the viewers being college or university students with an average household earnings of $70,000, the purchasing power of the target market reveals possibilities of increasing viewership.
With elements such as 'parents showing an interest in their kids's option of home entertainment' and 'greater purchasing power in families' due to both parents contributing towards the household income, we can see that the entertainment company has a great deal of potential for industry gamers.
While technological aspects have actually contributed towards reducing the expense of home entertainment with the intro of multimedia, truth based entertainment, house theatres, cable networks, the pressure on theatres has actually increased in regard to making the theatre experience richer for consumers in order to make it more attractive than enjoying films in your home. In addition, while developments have actually contributed towards the risk of 'piracy' they have also contributed towards ease of keeping and dispersing movies.