General Environment Analysis Among the factors in Lionsgate’s external environment, none are more impactful than the force of technological advancements in the industry. The gross popularity of new digital modes of content delivery and storage such a Video-On-Demand (VOD) and online streaming platforms, supported by a sociocultural shift to a convenience dominated society, have fuelled the decline of both domestic and international ticket and DVD sales. See Exhibit 4 for a breakdown of declining DVD sales in the Hunger Games franchise. However, while the traditional DVD format has passed its saturation point, as consumers place an increasing value on higher quality content, Blu-ray technology should remain relevant at least for the near future until its inevitable decline to digital distribution channels. These trends, in conjunction with premium 3D film offerings and rising production costs have gradually forced average cinema ticket prices to rise, a trend that will likely continue with the decline of cinema attendance as studios search new forms of revenue growth vehicles. Piracy, the illegal distribution, sale, or sharing of…show more content… (TWI) with its Warner Bros. Entertainment (WBE) studio brand is an industry-leader in the media and entertainment space, with TWI’s segmented operations in media networks, filmed entertainment, and publishing. WBE’s focus is mainly on the production and distributing of motion pictures, television, home videos and videogames. WBE’s operating strategy focuses on generating blockbuster potential by building successful film franchises and producing filmed entertainment across a variety of genres, targeting consumers of all age groups. WBE has shown remarkable stability, as they have consistently been in the top three positions with regards to market share for the past 15 years, currently at 15.3% at 2015 year’s end, a 0.2% increase from 2014. See Exhibit 3 for a breakdown of the industry market