As far as the political and legal elements are concerned, the whole film market is impacted by the risk of piracy which could possibly produce an unfavorable influence on the general profits of the film industry. Having stated that, copyright laws use defense to the movie industry in regards to dissuading piracy.
While the political and legal environment offers protection to film makers, globalization and improvement of technological aspects have increased legal challenges such as ease of piracy and violating intellectual property rights.
It must be kept in mind that movies are part of the show business while expense on any form of entertainment is essentially an optional expense which is more or a high-end rather than a requirement. We look at the comparison of the GDP trend with the trend in need for films, we can see that the two are not directly proportional suggesting that any modification in GDP development does not always bring about a modification in this specific entertainment.
As far as the social-cultural factors are worried, it should be kept in mind that the 70% of IMAX viewers are between the ages of 19 and 56 which allows a great deal of variety when it pertains to opting for a particular section. Additionally with bulk of the viewers being college or university students with a typical household income of $70,000, the buying power of the target market reveals possibilities of increasing viewership.
With factors such as 'moms and dads showing an interest in their children's choice of entertainment' and 'greater buying power in households' due to both parents contributing towards the household earnings, we can see that the home entertainment business has a great deal of potential for market players.
While technological aspects have contributed towards decreasing the cost of home entertainment with the intro of multimedia, reality based entertainment, home theatres, cable networks, the pressure on theatres has increased in regard to making the theatre experience richer for customers in order to make it more appealing than viewing movies in your home. Furthermore, while developments have actually contributed towards the risk of 'piracy' they have likewise contributed towards ease of saving and distributing movies.