As far as the legal and political factors are worried, the whole film industry is affected by the threat of piracy which might possibly produce an unfavorable influence on the general income of the film industry. Having said that, copyright laws provide protection to the film industry in regards to discouraging piracy.
While the legal and political environment provides security to movie makers, globalization and improvement of technological aspects have increased legal difficulties such as ease of piracy and breaching intellectual property rights.
It must be kept in mind that films are part of the entertainment industry while expense on any form of home entertainment is essentially an optional expenditure which is more or a high-end instead of a requirement. Nevertheless, we look at the comparison of the GDP pattern with the pattern in demand for motion pictures, we can see that the two are not directly proportional recommending that any modification in GDP growth does not necessarily cause a change in this particular home entertainment.
As far as the social-cultural factors are concerned, it needs to be kept in mind that the 70% of IMAX audiences are in between the ages of 19 and 56 which allows a lot of variety when it pertains to opting for a specific segment. Additionally with majority of the viewers being college or university students with a typical family earnings of $70,000, the buying power of the target market reveals possibilities of increasing viewership.
With elements such as 'moms and dads revealing an interest in their kids's choice of entertainment' and 'greater purchasing power in homes' due to both moms and dads contributing towards the household income, we can see that the home entertainment service 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 entertainment, home theatres, cable networks, the pressure on theatres has increased in regard to making the theatre experience richer for consumers in order to make it more appealing than seeing motion pictures in your home. Furthermore, while innovations have contributed towards the danger of 'piracy' they have actually likewise contributed towards ease of keeping and distributing movies.