As far as the political and legal elements are concerned, the entire movie market is affected by the threat of piracy which might possibly cause an unfavorable effect on the overall earnings of the film industry. Having stated that, copyright laws provide protection to the movie industry in terms of preventing piracy.
While the political and legal environment provides security to film makers, globalization and improvement of technological elements have actually increased legal challenges such as ease of piracy and breaking intellectual property rights.
It must be kept in mind that movies become part of the entertainment industry while expense on any type of entertainment is generally an optional expenditure which is more or a luxury rather than a necessity. We look at the comparison of the GDP trend with the trend in demand for films, we can see that the 2 are not straight proportional recommending that any change in GDP development does not always bring about a change in this particular entertainment.
As far as the social-cultural factors are worried, it needs to be kept in mind that the 70% of IMAX viewers are in between the ages of 19 and 56 which permits a lot of variety when it concerns going with a specific sector. In addition with majority of the viewers being college or university students with an average household earnings of $70,000, the buying power of the target market shows possibilities of increasing viewership.
With aspects such as 'parents showing an interest in their kids's option of home entertainment' and 'greater purchasing power in families' due to both moms and dads contributing towards the family income, we can see that the home entertainment service has a lot of capacity for industry players.
While technological elements have contributed towards lowering the cost of home entertainment with the intro of multimedia, truth based home entertainment, house theatres, cable networks, the pressure on theatres has actually increased in regard to making the theatre experience richer for customers in order to make it more appealing than enjoying movies in your home. In addition, while innovations have actually contributed towards the risk of 'piracy' they have actually also contributed towards ease of saving and dispersing movies.