As far as the legal and political elements are worried, the whole film market is impacted by the threat of piracy which might potentially produce an unfavorable impact on the total revenue of the film market. Having said that, copyright laws offer protection to the movie industry in terms of discouraging piracy.
While the legal and political environment uses security to movie makers, globalization and advancement of technological factors have actually increased legal obstacles such as ease of piracy and breaking copyright rights.
It needs to be kept in mind that motion pictures belong to the show business while expenditure on any type of home entertainment is generally an optional cost which is more or a luxury rather than a need. However, we take a look at the comparison of the GDP pattern with the pattern in demand for movies, we can see that the two are not directly proportional suggesting that any change in GDP growth does not always bring about a modification in this particular home entertainment.
As far as the social-cultural aspects 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 lot of diversity when it pertains to opting for a specific segment. Furthermore with bulk of the audiences being college or university students with an average home earnings of $70,000, the buying power of the target market shows possibilities of increasing viewership.
With factors such as 'parents showing an interest in their children's option of home entertainment' and 'higher buying power in families' due to both moms and dads contributing towards the family earnings, we can see that the entertainment company has a great deal of capacity for industry gamers.
While technological elements have contributed towards lowering the cost of entertainment with the introduction 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 movies in the house. Additionally, while innovations have contributed towards the danger of 'piracy' they have actually also contributed towards ease of saving and dispersing films.