As far as the legal and political elements are worried, the whole film industry is impacted by the danger of piracy which might possibly bring about a negative impact on the overall earnings of the movie industry. Having stated that, copyright laws use security to the film industry in terms of preventing piracy.
While the political and legal environment uses defense to film makers, globalization and advancement of technological elements have increased legal difficulties such as ease of piracy and breaching copyright rights.
It ought to be noted that films are part of the show business while expenditure on any type of entertainment is essentially an optional cost which is more or a luxury instead of a requirement. However, we take a look at the comparison of the GDP pattern with the trend in demand for motion pictures, we can see that the two are not straight proportional suggesting that any modification in GDP growth does not always produce a modification in this specific entertainment.
As far as the social-cultural aspects are worried, it should be kept in mind that the 70% of IMAX audiences are in between the ages of 19 and 56 which enables a great deal of diversity when it comes to going with a specific segment. Additionally with majority of the viewers being college or university students with a typical home income of $70,000, the purchasing power of the target audience shows possibilities of increasing viewership.
With aspects such as 'moms and dads revealing an interest in their children's choice of entertainment' and 'higher purchasing power in homes' due to both parents contributing towards the home income, we can see that the entertainment company has a lot of potential for industry players.
While technological aspects have actually contributed towards reducing the expense of home entertainment with the introduction of multimedia, truth based home entertainment, house theatres, cable television networks, the pressure on theatres has increased in regard to making the theatre experience richer for customers in order to make it more attractive than viewing movies in the house. In addition, while developments have contributed towards the risk of 'piracy' they have also contributed towards ease of keeping and dispersing movies.