As far as the legal and political factors are worried, the whole film market is affected by the hazard of piracy which could potentially produce an unfavorable impact on the total revenue of the film market. Having stated that, copyright laws provide security to the movie industry in regards to dissuading piracy.
While the legal and political environment offers defense to film makers, globalization and improvement of technological aspects have increased legal obstacles such as ease of piracy and violating copyright rights.
It ought to be kept in mind that motion pictures are part of the show business while expense on any kind of home entertainment is generally an optional expense which is more or a high-end instead of a need. We look at the contrast of the GDP trend with the pattern in demand for films, we can see that the two are not directly proportional suggesting that any change in GDP development does not necessarily bring about a change in this specific entertainment.
As far as the social-cultural factors are concerned, it must be noted that the 70% of IMAX viewers are in between the ages of 19 and 56 which enables a great deal of diversity when it pertains to choosing a particular section. Furthermore with majority of the viewers being college or university students with a typical household earnings of $70,000, the buying power of the target market reveals possibilities of increasing viewership.
With elements such as 'moms and dads showing an interest in their children's option of home entertainment' and 'greater buying power in homes' due to both moms and dads contributing towards the family earnings, we can see that the home entertainment company has a lot of potential for industry players.
While technological factors have actually contributed towards decreasing the expense of home 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 watching motion pictures at home. Additionally, while developments have actually contributed towards the risk of 'piracy' they have also contributed towards ease of saving and distributing movies.