As far as the political and legal factors are concerned, the whole film industry is affected by the risk of piracy which could possibly cause a negative impact on the general income 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 provides security to film makers, globalization and improvement of technological factors have increased legal difficulties such as ease of piracy and violating intellectual property rights.
It must be kept in mind that movies belong to the entertainment industry while expenditure on any form of home entertainment is generally an optional cost which is more or a luxury rather than a necessity. We look at the comparison of the GDP pattern with the pattern in demand for movies, we can see that the two are not directly proportional recommending that any change in GDP development does not necessarily bring about a modification in this specific home entertainment.
As far as the social-cultural factors are worried, it should be noted that the 70% of IMAX audiences are in between the ages of 19 and 56 which allows a lot of variety when it comes to selecting a specific segment. Additionally with bulk 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 elements such as 'parents showing an interest in their kids's option of home entertainment' and 'higher purchasing power in households' due to both parents contributing towards the home income, we can see that the entertainment company has a great deal of capacity for industry players.
While technological factors have contributed towards decreasing the expense of home entertainment with the introduction of multimedia, truth based entertainment, home theatres, cable networks, the pressure on theatres has 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 developments have actually contributed towards the hazard of 'piracy' they have actually likewise contributed towards ease of keeping and dispersing films.