As far as the legal and political factors are concerned, the entire movie market is affected by the danger of piracy which might potentially cause an unfavorable effect on the overall earnings of the film market. Having stated that, copyright laws use security to the movie industry in regards to dissuading piracy.
While the political and legal environment offers defense to film makers, globalization and development of technological elements have increased legal obstacles such as ease of piracy and breaching copyright rights.
It must be kept in mind that motion pictures become part of the entertainment industry while expense on any type of home entertainment is essentially an optional expense which is more or a high-end instead of a need. However, we look at the comparison of the GDP trend with the trend in demand for films, we can see that the two are not directly proportional suggesting that any modification in GDP growth does not always cause a modification in this particular entertainment.
As far as the social-cultural factors are concerned, it needs to be noted that the 70% of IMAX viewers are in between the ages of 19 and 56 which allows a lot of diversity when it comes to selecting a specific section. In addition with majority of the audiences being college or university students with a typical household earnings 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 home entertainment' and 'higher purchasing power in homes' due to both moms and dads contributing towards the household income, we can see that the home entertainment business has a great deal of capacity for industry players.
While technological aspects have contributed towards reducing the expense of entertainment with the intro of multimedia, reality based home entertainment, house theatres, cable television networks, the pressure on theatres has increased in term of making the theatre experience richer for customers in order to make it more attractive than viewing films in the house. Additionally, while innovations have contributed towards the danger of 'piracy' they have also contributed towards ease of storing and distributing movies.