As far as the political and legal factors are concerned, the entire film industry is impacted by the danger of piracy which could potentially bring about a negative effect on the total revenue of the film market. Having said that, copyright laws use security to the film industry in regards to discouraging piracy.
While the political and legal environment provides security to movie makers, globalization and advancement of technological aspects have actually increased legal challenges such as ease of piracy and breaching copyright rights.
It should be noted that motion pictures are part of the show business while expenditure on any type of entertainment is generally an optional expenditure which is more or a high-end rather than a necessity. We look at the comparison of the GDP trend with the trend in demand for motion pictures, we can see that the 2 are not directly proportional suggesting that any change in GDP growth does not necessarily bring about a change in this particular home entertainment.
As far as the social-cultural elements are concerned, it needs to be kept in mind that the 70% of IMAX viewers are between the ages of 19 and 56 which allows a great deal of diversity when it comes to opting for a specific segment. In addition with bulk of the audiences being college or university students with an average household income of $70,000, the acquiring power of the target audience shows possibilities of increasing viewership.
With factors such as 'parents revealing an interest in their kids's option of home entertainment' and 'higher buying power in households' due to both parents contributing towards the household earnings, we can see that the entertainment organisation has a lot of potential for market gamers.
While technological aspects have contributed towards decreasing the expense of home entertainment with the intro of multimedia, truth based entertainment, house theatres, cable networks, the pressure on theatres has actually increased in term of making the theatre experience richer for consumers in order to make it more attractive than watching films in the house. Additionally, while innovations have contributed towards the hazard of 'piracy' they have actually also contributed towards ease of saving and distributing films.