As far as the political and legal elements are concerned, the entire film market is affected by the threat of piracy which could possibly cause an unfavorable influence on the general revenue of the movie market. Having stated that, copyright laws provide defense to the movie industry in regards to preventing piracy.
While the political and legal environment uses protection to film makers, globalization and development of technological aspects have increased legal difficulties such as ease of piracy and breaking intellectual property rights.
It needs to be noted that movies are part of the show business while expense on any kind of home entertainment is basically an optional cost which is more or a high-end instead of a requirement. Nevertheless, we look at the comparison of the GDP pattern with the pattern in demand for movies, we can see that the two are not straight proportional suggesting that any modification in GDP growth does not always produce a change in this particular home entertainment.
As far as the social-cultural factors are concerned, it ought to be kept in mind that the 70% of IMAX viewers are between the ages of 19 and 56 which enables a lot of variety when it comes to selecting a specific section. Furthermore with majority of the audiences being college or university students with an average family earnings of $70,000, the purchasing power of the target audience shows possibilities of increasing viewership.
With aspects such as 'moms and dads showing an interest in their kids's option of entertainment' and 'higher buying power in households' due to both parents contributing towards the household income, we can see that the home entertainment service has a great deal of potential for industry players.
While technological factors have actually contributed towards reducing the cost of home entertainment with the intro of multimedia, reality based home entertainment, home theatres, cable television networks, the pressure on theatres has actually increased in term of making the theatre experience richer for consumers in order to make it more attractive than watching movies in the house. In addition, while innovations have actually contributed towards the hazard of 'piracy' they have actually likewise contributed towards ease of storing and dispersing films.