As far as the legal and political elements are worried, the whole film industry is affected by the threat of piracy which could potentially produce an unfavorable effect on the overall revenue of the film industry. Having stated that, copyright laws use defense to the film industry in terms of dissuading piracy.
While the political and legal environment uses security to movie makers, globalization and development of technological aspects have actually increased legal obstacles 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 form of entertainment is essentially an optional expense which is more or a high-end instead of a need. Nevertheless, we look at the comparison of the GDP trend with the pattern in demand for films, we can see that the two are not straight proportional recommending that any change in GDP growth does not always cause a change in this specific entertainment.
As far as the social-cultural aspects are worried, it must be noted that the 70% of IMAX viewers are in between the ages of 19 and 56 which enables a great deal of diversity when it concerns selecting a particular section. Furthermore with majority of the viewers being college or university students with a typical family earnings of $70,000, the purchasing power of the target market reveals possibilities of increasing viewership.
With factors such as 'moms and dads showing an interest in their kids's option of home entertainment' and 'greater buying power in households' due to both moms and dads contributing towards the home earnings, we can see that the entertainment business has a lot of capacity for market gamers.
While technological factors have contributed towards decreasing the cost of home entertainment with the introduction of multimedia, reality based home 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 enjoying motion pictures at home. Additionally, while developments have contributed towards the danger of 'piracy' they have actually likewise contributed towards ease of keeping and dispersing films.