As far as the legal and political aspects are worried, the entire movie industry is affected by the hazard of piracy which could potentially produce a negative effect on the total profits of the film market. Having said that, copyright laws use defense to the movie industry in terms of discouraging piracy.
While the legal and political environment uses security to movie makers, globalization and improvement of technological aspects have actually increased legal challenges such as ease of piracy and violating intellectual property rights.
It should be noted that movies belong to the entertainment industry while expense on any kind of home entertainment is essentially an optional expenditure which is more or a luxury rather than a need. Nevertheless, we look at the contrast of the GDP trend with the trend in demand for movies, we can see that the two are not directly proportional recommending that any change in GDP growth does not always bring about a modification in this specific home entertainment.
As far as the social-cultural elements are concerned, it must be kept in mind that the 70% of IMAX audiences are in between the ages of 19 and 56 which enables a lot of diversity when it comes to selecting a specific segment. In addition with bulk of the audiences being college or university students with an average household earnings of $70,000, the purchasing power of the target audience reveals possibilities of increasing viewership.
With elements such as 'parents showing an interest in their children's choice of home entertainment' and 'greater buying power in homes' due to both moms and dads contributing towards the home earnings, we can see that the home entertainment service has a lot of potential for market players.
While technological factors have contributed towards decreasing the expense of entertainment with the introduction of multimedia, truth based home entertainment, home theatres, cable television networks, the pressure on theatres has actually increased in regard to making the theatre experience richer for customers in order to make it more appealing than seeing movies in the house. In addition, while developments have contributed towards the hazard of 'piracy' they have actually likewise contributed towards ease of keeping and distributing films.