As far as the legal and political factors are worried, the whole movie industry is affected by the danger of piracy which could potentially cause a negative impact on the total revenue of the film industry. Having stated that, copyright laws use protection to the film industry in regards to discouraging piracy.
While the legal and political environment offers protection to film makers, globalization and improvement of technological elements have increased legal challenges such as ease of piracy and violating intellectual property rights.
It should be noted that motion pictures are part of the show business while expense on any form of home entertainment is generally an optional expenditure which is more or a luxury rather than a requirement. We look at the contrast of the GDP pattern with the pattern in need for films, we can see that the 2 are not directly proportional suggesting that any modification in GDP development does not necessarily bring about a modification in this specific entertainment.
As far as the social-cultural factors are worried, it ought to be noted that the 70% of IMAX viewers are in between the ages of 19 and 56 which enables a lot of diversity when it comes to selecting a particular segment. In addition with bulk of the audiences being college or university students with an average household earnings of $70,000, the buying power of the target market reveals possibilities of increasing viewership.
With factors such as 'moms and dads showing an interest in their children's choice of home entertainment' and 'higher buying power in homes' due to both parents contributing towards the family income, we can see that the home entertainment organisation has a lot of capacity for market gamers.
While technological factors have actually 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 increased in regard to making the theatre experience richer for consumers in order to make it more appealing than watching films in the house. Additionally, while innovations have contributed towards the threat of 'piracy' they have actually also contributed towards ease of storing and distributing films.