As far as the legal and political elements are concerned, the whole film market is affected by the threat of piracy which could potentially bring about an unfavorable effect on the general income of the film industry. Having stated that, copyright laws use security to the movie market in regards to discouraging piracy.
While the legal and political environment provides defense to film makers, globalization and improvement of technological elements have increased legal challenges such as ease of piracy and breaking copyright rights.
It needs to be noted that movies become part of the entertainment industry while expenditure on any type of home entertainment is generally an optional expense which is more or a luxury rather than a need. We look at the contrast of the GDP pattern with the pattern in need for films, we can see that the two are not directly proportional recommending that any change in GDP development does not necessarily bring about a change in this specific home entertainment.
As far as the social-cultural factors are concerned, it ought to be noted that the 70% of IMAX audiences are in between the ages of 19 and 56 which enables a great deal of diversity when it pertains to choosing a specific section. Additionally with majority of the viewers being college or university students with a typical household income of $70,000, the buying power of the target market reveals possibilities of increasing viewership.
With aspects such as 'moms and dads revealing an interest in their children's option of home entertainment' and 'higher buying power in families' due to both moms and dads contributing towards the family earnings, we can see that the entertainment company has a great deal of capacity for market players.
While technological aspects have contributed towards decreasing the cost of home entertainment with the intro of multimedia, truth based entertainment, house theatres, cable television networks, the pressure on theatres has increased in term of making the theatre experience richer for consumers in order to make it more appealing than seeing movies at home. Furthermore, while innovations have contributed towards the threat of 'piracy' they have actually likewise contributed towards ease of saving and dispersing films.