As far as the legal and political elements are worried, the entire film industry is impacted by the danger of piracy which might potentially produce a negative impact on the general revenue of the film market. Having stated that, copyright laws provide security to the film industry in terms of preventing piracy.
While the legal and political environment uses defense to movie makers, globalization and improvement of technological factors have actually increased legal difficulties such as ease of piracy and violating copyright rights.
It needs to be kept in mind that movies belong to the entertainment industry while expenditure on any form of home entertainment is generally an optional expense which is more or a high-end rather than a requirement. Nevertheless, we take a look at the contrast of the GDP trend with the trend in demand for motion pictures, we can see that the two are not directly proportional recommending that any modification in GDP growth does not necessarily cause a modification in this particular home entertainment.
As far as the social-cultural aspects are worried, it needs to be noted that the 70% of IMAX viewers are in between the ages of 19 and 56 which permits a lot of diversity when it comes to choosing a particular segment. Additionally with bulk of the viewers being college or university students with an average family earnings of $70,000, the buying power of the target market shows possibilities of increasing viewership.
With elements such as 'moms and dads showing an interest in their kids's option of entertainment' and 'higher buying power in families' due to both parents contributing towards the family income, we can see that the entertainment company has a great deal of potential for market players.
While technological aspects have actually contributed towards lowering 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 regard to making the theatre experience richer for consumers in order to make it more appealing than watching movies in the house. In addition, while developments have actually contributed towards the risk of 'piracy' they have likewise contributed towards ease of saving and distributing films.