As far as the political and legal aspects are worried, the entire film industry is affected by the threat of piracy which could potentially cause a negative impact on the overall earnings of the movie industry. Having stated that, copyright laws offer defense to the film industry in terms of preventing piracy.
While the political and legal environment offers defense to film makers, globalization and advancement of technological factors have increased legal difficulties such as ease of piracy and breaking intellectual property rights.
It needs to be noted that motion pictures belong to the show business while expenditure on any kind of entertainment is basically an optional expense which is more or a luxury instead of a need. However, we take a look at the contrast of the GDP trend with the pattern in demand for films, we can see that the two are not directly proportional suggesting that any change in GDP growth does not necessarily produce a change in this specific home entertainment.
As far as the social-cultural factors are worried, it should be kept in mind that the 70% of IMAX viewers are in between the ages of 19 and 56 which enables a lot of diversity when it concerns opting for a specific sector. Furthermore with majority of the audiences being college or university students with a typical family earnings of $70,000, the buying power of the target audience reveals possibilities of increasing viewership.
With factors such as 'parents revealing an interest in their children's option of entertainment' and 'greater buying power in households' due to both parents contributing towards the household earnings, we can see that the home entertainment organisation has a great deal of potential for industry gamers.
While technological factors have contributed towards lowering the expense of home entertainment with the introduction of multimedia, reality based entertainment, house 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 appealing than viewing films at home. Additionally, while innovations have contributed towards the danger of 'piracy' they have likewise contributed towards ease of saving and dispersing films.