As far as the political and legal factors are concerned, the whole film industry is impacted by the risk of piracy which could potentially produce an unfavorable impact on the general revenue of the film market. Having said that, copyright laws provide security to the movie market in regards to preventing piracy.
While the legal and political environment uses defense to film makers, globalization and advancement of technological elements have actually increased legal difficulties such as ease of piracy and breaking intellectual property rights.
It must be kept in mind that films are part of the show business while expense on any type of entertainment is basically an optional expenditure which is more or a luxury instead of a requirement. We look at the comparison of the GDP trend with the trend in need for films, we can see that the 2 are not directly proportional suggesting that any change in GDP growth does not always bring about a change in this particular entertainment.
As far as the social-cultural factors are worried, it should be noted that the 70% of IMAX audiences are in between the ages of 19 and 56 which permits a great deal of diversity when it concerns opting for a specific segment. Furthermore with bulk of the audiences being college or university students with an average household income of $70,000, the purchasing power of the target audience shows possibilities of increasing viewership.
With factors such as 'moms and dads revealing an interest in their children's choice of home entertainment' and 'higher purchasing power in families' due to both moms and dads contributing towards the home earnings, we can see that the home entertainment organisation has a lot of potential for industry players.
While technological aspects have actually contributed towards lowering the expense of entertainment with the intro of multimedia, truth based entertainment, house theatres, cable television networks, the pressure on theatres has actually increased in term of making the theatre experience richer for consumers in order to make it more attractive than enjoying films in your home. Furthermore, while developments have contributed towards the hazard of 'piracy' they have likewise contributed towards ease of saving and distributing films.