As far as the political and legal aspects are concerned, the entire movie industry is impacted by the risk of piracy which could potentially produce a negative impact on the general profits of the film industry. Having stated that, copyright laws provide security to the movie market in terms of discouraging piracy.
While the legal and political environment provides defense to film makers, globalization and improvement of technological factors have increased legal difficulties such as ease of piracy and breaching copyright rights.
It must be noted that motion pictures become part of the show business while expense on any kind of entertainment is generally an optional expenditure which is more or a luxury instead of a requirement. 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 recommending that any change in GDP growth does not always bring about a modification in this specific entertainment.
As far as the social-cultural elements are worried, it needs to be noted that the 70% of IMAX audiences are in between the ages of 19 and 56 which permits a great deal of diversity when it concerns going with a particular sector. In addition with majority of the audiences being college or university students with an average household earnings of $70,000, the acquiring power of the target market shows possibilities of increasing viewership.
With aspects such as 'moms and dads showing an interest in their kids's choice of home entertainment' and 'higher buying power in homes' due to both moms and dads contributing towards the household income, we can see that the entertainment company has a lot of potential for market players.
While technological aspects have contributed towards lowering the expense of home entertainment with the introduction of multimedia, reality 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 viewing motion pictures in the house. Furthermore, while innovations have contributed towards the danger of 'piracy' they have actually also contributed towards ease of storing and distributing films.