As far as the political and legal elements are concerned, the whole film industry is affected by the danger of piracy which might possibly produce an unfavorable influence on the overall income of the film market. Having said that, copyright laws offer protection to the film market in terms of preventing piracy.
While the political and legal environment uses security to film makers, globalization and development of technological elements have increased legal obstacles such as ease of piracy and violating intellectual property rights.
It needs to be kept in mind that motion pictures belong to the show business while expenditure on any type of home entertainment is essentially an optional expenditure which is more or a luxury instead of a need. Nevertheless, we look at the contrast of the GDP pattern with the trend in demand for motion pictures, we can see that the two are not directly proportional recommending that any change in GDP growth does not necessarily bring about a modification in this particular entertainment.
As far as the social-cultural aspects are worried, it must be noted that the 70% of IMAX audiences are between the ages of 19 and 56 which enables a great deal of variety when it comes to going with a specific sector. Furthermore with majority of the viewers being college or university students with an average household earnings of $70,000, the purchasing power of the target audience shows possibilities of increasing viewership.
With aspects such as 'parents showing an interest in their kids's choice of entertainment' and 'greater purchasing power in families' due to both moms and dads contributing towards the household income, we can see that the entertainment organisation has a lot of potential for market gamers.
While technological elements have contributed towards lowering the expense of home entertainment with the introduction of multimedia, truth based home entertainment, home theatres, cable networks, the pressure on theatres has increased in regard to making the theatre experience richer for customers in order to make it more attractive than watching motion pictures in the house. Additionally, while developments have actually contributed towards the danger of 'piracy' they have actually also contributed towards ease of storing and distributing films.