As far as the legal and political aspects are concerned, the entire film market is affected by the hazard of piracy which might potentially bring about a negative impact on the overall profits of the movie industry. Having said that, copyright laws use defense to the movie industry in terms of discouraging piracy.
While the legal and political environment uses security to film makers, globalization and advancement of technological aspects have increased legal obstacles such as ease of piracy and breaking copyright rights.
It should be noted that motion pictures belong to the show business while expenditure on any form of home entertainment is basically an optional expense which is more or a luxury instead of a requirement. Nevertheless, we look at the comparison of the GDP pattern with the pattern 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 change in this specific entertainment.
As far as the social-cultural elements are worried, it should be kept in mind 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. Furthermore with bulk of the audiences being college or university students with an average family income of $70,000, the acquiring power of the target market shows possibilities of increasing viewership.
With factors such as 'moms and dads revealing an interest in their kids's option of entertainment' and 'higher buying power in families' due to both moms and dads contributing towards the home income, we can see that the entertainment organisation has a lot of potential for industry gamers.
While technological elements have contributed towards lowering the cost of home entertainment with the intro of multimedia, truth based entertainment, house theatres, cable television networks, the pressure on theatres has actually increased in term of making the theatre experience richer for customers in order to make it more attractive than enjoying films in the house. Additionally, while developments have contributed towards the danger of 'piracy' they have likewise contributed towards ease of keeping and distributing movies.