As far as the political and legal aspects are worried, the entire movie market is impacted by the risk of piracy which might potentially cause an unfavorable effect on the overall earnings of the film industry. Having said that, copyright laws offer protection to the film market in terms of dissuading piracy.
While the legal and political environment uses security to film makers, globalization and advancement of technological aspects have increased legal challenges such as ease of piracy and breaking copyright rights.
It ought to be kept in mind that films belong to the entertainment industry while expenditure on any type of home entertainment is generally an optional expense which is more or a luxury rather than a need. We look at the comparison of the GDP pattern with the trend in demand for films, we can see that the 2 are not straight proportional suggesting that any change in GDP growth does not always bring about a modification in this particular entertainment.
As far as the social-cultural factors are worried, it ought to be kept in mind that the 70% of IMAX viewers are between the ages of 19 and 56 which enables a great deal of diversity when it pertains to opting for a particular segment. Additionally with bulk of the audiences being college or university students with an average household earnings of $70,000, the acquiring power of the target market reveals possibilities of increasing viewership.
With aspects such as 'parents revealing an interest in their children's option of home entertainment' and 'greater buying power in households' due to both parents contributing towards the home income, we can see that the home entertainment business has a lot of potential for market players.
While technological aspects have actually contributed towards decreasing the cost of home entertainment with the intro of multimedia, reality based home entertainment, house theatres, cable networks, the pressure on theatres has increased in term of making the theatre experience richer for consumers in order to make it more appealing than watching films in the house. Furthermore, while innovations have contributed towards the danger of 'piracy' they have likewise contributed towards ease of keeping and distributing movies.