As far as the political and legal elements are worried, the entire movie industry is impacted by the danger of piracy which could potentially cause an unfavorable influence on the total earnings of the film industry. Having stated that, copyright laws use protection to the film market in terms of discouraging piracy.
While the political and legal environment uses defense to movie makers, globalization and improvement of technological elements have actually increased legal obstacles such as ease of piracy and breaking intellectual property rights.
It should be noted that films are part of the show business while expenditure on any type of home entertainment is basically an optional expenditure which is more or a luxury rather than a necessity. However, we look at the contrast of the GDP trend with the pattern in demand for movies, we can see that the two are not directly proportional recommending that any modification in GDP growth does not always bring about a change in this specific home entertainment.
As far as the social-cultural elements are worried, it ought to be noted that the 70% of IMAX audiences are in between the ages of 19 and 56 which enables a lot of variety when it concerns opting for a specific section. Additionally with bulk of the audiences being college or university students with an average household earnings of $70,000, the acquiring power of the target audience shows possibilities of increasing viewership.
With aspects such as 'parents revealing an interest in their kids's choice of entertainment' and 'greater buying power in families' due to both moms and dads contributing towards the home income, we can see that the home entertainment service has a lot of capacity for industry players.
While technological factors have contributed towards lowering the expense of entertainment with the introduction of multimedia, truth based entertainment, home theatres, cable television networks, the pressure on theatres has actually increased in term of making the theatre experience richer for customers in order to make it more appealing than watching motion pictures in your home. In addition, while innovations have actually contributed towards the threat of 'piracy' they have also contributed towards ease of keeping and distributing movies.