As far as the legal and political factors are worried, the whole movie market is affected by the threat of piracy which might potentially cause an unfavorable effect on the general earnings of the film industry. Having said that, copyright laws offer security to the film industry in regards to preventing piracy.
While the political and legal environment offers protection to movie makers, globalization and development of technological factors have increased legal difficulties such as ease of piracy and breaching intellectual property rights.
It must be kept in mind that films become part of the show business while expense on any type of entertainment is generally an optional expense which is more or a high-end rather than a requirement. Nevertheless, 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 directly proportional recommending that any change in GDP development does not always bring about a change in this specific home entertainment.
As far as the social-cultural aspects are worried, it should be noted that the 70% of IMAX audiences are between the ages of 19 and 56 which permits a great deal of variety when it comes to choosing a specific sector. Furthermore with bulk of the viewers being college or university students with a typical home income of $70,000, the acquiring power of the target market reveals possibilities of increasing viewership.
With aspects such as 'moms and dads revealing an interest in their kids's choice of home entertainment' and 'higher buying power in families' 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 elements have contributed towards reducing the cost of entertainment with the introduction of multimedia, truth based home entertainment, house theatres, cable networks, the pressure on theatres has increased in regard to making the theatre experience richer for customers in order to make it more appealing than seeing movies in your home. Furthermore, while developments have contributed towards the danger of 'piracy' they have likewise contributed towards ease of keeping and distributing movies.