As far as the legal and political aspects are worried, the entire film industry is affected by the risk of piracy which might potentially produce an unfavorable effect on the total profits of the film industry. Having said that, copyright laws provide defense to the film industry in terms of dissuading piracy.
While the legal and political environment offers protection to movie makers, globalization and development of technological elements have increased legal difficulties such as ease of piracy and breaching copyright rights.
It must be kept in mind that motion pictures belong to the show business while expenditure on any form of home entertainment is generally 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 films, we can see that the 2 are not directly proportional recommending that any modification in GDP development does not necessarily bring about a modification in this specific entertainment.
As far as the social-cultural elements are concerned, it ought to be kept in mind that the 70% of IMAX viewers are between the ages of 19 and 56 which allows a great deal of diversity when it comes to going with a specific segment. In addition with bulk of the audiences being college or university students with an average family earnings of $70,000, the purchasing power of the target audience shows possibilities of increasing viewership.
With elements such as 'parents revealing an interest in their children's choice of home entertainment' and 'greater buying power in families' due to both parents contributing towards the household earnings, we can see that the home entertainment organisation has a great deal of potential for market players.
While technological aspects have contributed towards decreasing the expense of home entertainment with the introduction of multimedia, truth based home entertainment, home theatres, cable television 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 viewing films at home. Furthermore, while developments have actually contributed towards the threat of 'piracy' they have actually also contributed towards ease of keeping and dispersing movies.