As far as the legal and political factors are worried, the entire film industry is affected by the risk of piracy which might potentially bring about a negative influence on the general profits of the movie industry. Having stated that, copyright laws provide security to the film market in terms of discouraging piracy.
While the political and legal environment offers defense 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 noted that films are part of the entertainment industry while expenditure on any kind of home entertainment is basically an optional expense which is more or a high-end rather than a need. However, we take a look at the contrast of the GDP pattern with the trend in demand for motion pictures, we can see that the two are not straight proportional recommending that any modification in GDP growth does not necessarily cause a modification in this particular home entertainment.
As far as the social-cultural elements are worried, it needs to be kept in mind that the 70% of IMAX viewers are between the ages of 19 and 56 which permits a great deal of diversity when it pertains to opting for a particular segment. In addition with bulk of the viewers being college or university students with an average family earnings of $70,000, the purchasing power of the target audience reveals possibilities of increasing viewership.
With factors such as 'parents revealing an interest in their kids's option of entertainment' and 'greater purchasing power in homes' due to both moms and dads contributing towards the household earnings, we can see that the entertainment business has a lot of potential for industry gamers.
While technological aspects have contributed towards decreasing the cost 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 enjoying films at home. Furthermore, while developments have contributed towards the danger of 'piracy' they have likewise contributed towards ease of storing and distributing movies.