As far as the political and legal factors are concerned, the entire movie market is impacted by the risk of piracy which could possibly produce a negative impact on the total revenue of the movie industry. Having stated that, copyright laws provide defense to the film industry in terms of dissuading piracy.
While the political and legal environment offers defense to film makers, globalization and advancement of technological factors have increased legal obstacles such as ease of piracy and breaching copyright rights.
It ought to be noted that motion pictures belong to the entertainment industry while expenditure on any kind of home entertainment is essentially an optional expenditure which is more or a high-end rather than a requirement. Nevertheless, we look at the contrast of the GDP pattern with the trend in demand for movies, we can see that the two are not straight proportional suggesting that any change in GDP growth does not necessarily bring about a change in this specific home entertainment.
As far as the social-cultural elements are concerned, it must be noted that the 70% of IMAX audiences are in between the ages of 19 and 56 which allows a great deal of diversity when it pertains to opting for a specific section. Additionally with majority of the viewers being college or university students with a typical family income of $70,000, the acquiring power of the target audience reveals possibilities of increasing viewership.
With factors such as 'parents revealing an interest in their children's option of home entertainment' and 'greater buying power in households' due to both parents contributing towards the family earnings, we can see that the home entertainment service has a lot of capacity for industry gamers.
While technological factors have contributed towards lowering the cost of home entertainment with the introduction of multimedia, reality based entertainment, home theatres, cable networks, the pressure on theatres has actually increased in term of making the theatre experience richer for customers in order to make it more appealing than watching motion pictures in the house. Furthermore, while developments have contributed towards the danger of 'piracy' they have also contributed towards ease of keeping and dispersing films.