As far as the political and legal factors are concerned, the whole film market is impacted by the hazard of piracy which could possibly bring about a negative influence on the total revenue of the film market. Having stated that, copyright laws use protection to the movie market in regards to discouraging piracy.
While the legal and political environment uses defense to film makers, globalization and improvement of technological aspects have actually increased legal challenges such as ease of piracy and violating copyright rights.
It needs to be noted that films belong to the show business while expenditure on any kind of entertainment is basically an optional expense which is more or a high-end rather than a requirement. However, we look at the contrast of the GDP pattern with the pattern in demand for films, we can see that the two are not straight proportional suggesting 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 concerned, it needs to be noted that the 70% of IMAX viewers are between the ages of 19 and 56 which enables a lot of variety when it comes to going with a specific segment. Additionally with bulk of the audiences being college or university students with an average household income of $70,000, the acquiring power of the target audience reveals possibilities of increasing viewership.
With elements such as 'parents showing an interest in their children's choice of home entertainment' and 'greater purchasing power in homes' due to both moms and dads contributing towards the home income, we can see that the entertainment company has a lot of capacity for market gamers.
While technological factors have contributed towards reducing the expense of entertainment with the introduction of multimedia, truth based home entertainment, house theatres, cable television networks, the pressure on theatres has increased in regard to making the theatre experience richer for consumers in order to make it more attractive than seeing movies in the house. In addition, while innovations have actually contributed towards the risk of 'piracy' they have actually also contributed towards ease of storing and distributing films.