As far as the political and legal factors are worried, the entire movie market is affected by the risk of piracy which could possibly cause a negative impact on the total revenue of the movie industry. Having said that, copyright laws offer protection to the movie market in terms of discouraging piracy.
While the legal and political environment uses protection to movie makers, globalization and improvement of technological aspects have actually increased legal obstacles such as ease of piracy and breaching copyright rights.
It ought to be noted that films are part of the show business while expense on any kind of home entertainment is essentially an optional expenditure which is more or a high-end rather than a necessity. We look at the comparison of the GDP pattern with the trend in need for movies, we can see that the two are not directly proportional suggesting that any change in GDP growth does not necessarily bring about a modification in this particular home entertainment.
As far as the social-cultural factors are worried, it must be noted that the 70% of IMAX viewers are between the ages of 19 and 56 which allows a great deal of diversity when it concerns choosing a particular segment. Furthermore with majority of the audiences being college or university students with an average family earnings of $70,000, the buying power of the target audience reveals possibilities of increasing viewership.
With elements such as 'parents showing an interest in their children's choice of home entertainment' and 'higher purchasing power in families' due to both parents contributing towards the home earnings, we can see that the entertainment organisation has a lot of potential for market players.
While technological aspects have contributed towards reducing the cost of entertainment with the introduction of multimedia, truth based entertainment, house theatres, cable television networks, the pressure on theatres has actually increased in regard to making the theatre experience richer for consumers in order to make it more attractive than viewing motion pictures in your home. Additionally, while innovations have contributed towards the risk of 'piracy' they have actually also contributed towards ease of keeping and dispersing films.