As far as the political and legal aspects are concerned, the entire film industry is impacted by the threat of piracy which could potentially produce a negative impact on the general profits of the film market. Having said that, copyright laws provide defense to the film industry in terms of preventing piracy.
While the political and legal environment offers defense to film makers, globalization and advancement of technological elements have actually increased legal challenges such as ease of piracy and breaking copyright rights.
It should be kept in mind that films belong to the entertainment industry while expenditure on any type of entertainment is generally an optional cost which is more or a luxury instead of a requirement. Nevertheless, we look at the comparison of the GDP trend with the trend in demand for films, we can see that the two are not directly proportional suggesting that any modification in GDP growth does not necessarily cause a change in this particular entertainment.
As far as the social-cultural factors are concerned, it ought to be noted that the 70% of IMAX audiences are in between the ages of 19 and 56 which allows a great deal of diversity when it concerns opting for a particular sector. Additionally with majority of the audiences being college or university students with an average family income of $70,000, the acquiring power of the target audience reveals possibilities of increasing viewership.
With elements such as 'moms and dads revealing an interest in their kids's choice of home entertainment' and 'greater purchasing power in households' due to both moms and dads contributing towards the family earnings, we can see that the home entertainment business has a great deal of potential for industry gamers.
While technological factors have contributed towards decreasing the expense of home entertainment with the intro of multimedia, reality based entertainment, home 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 viewing motion pictures at home. Additionally, while developments have actually contributed towards the hazard of 'piracy' they have likewise contributed towards ease of saving and dispersing movies.