As far as the political and legal factors are worried, the entire movie industry is affected by the danger of piracy which might possibly cause an unfavorable effect on the overall income of the film market. Having said that, copyright laws use protection to the film market in terms of discouraging piracy.
While the legal and political environment offers protection to movie makers, globalization and advancement of technological aspects have actually increased legal obstacles such as ease of piracy and violating intellectual property rights.
It needs to be kept in mind that films belong to the show business while expenditure on any kind of entertainment is essentially an optional expenditure which is more or a luxury rather than a requirement. However, we look at the comparison of the GDP pattern with the trend in demand for movies, we can see that the two are not directly proportional suggesting that any modification in GDP development does not necessarily bring about a change in this specific home entertainment.
As far as the social-cultural elements are concerned, it needs to be noted that the 70% of IMAX viewers are between the ages of 19 and 56 which enables a lot of diversity when it concerns choosing a particular section. Furthermore with bulk of the viewers being college or university students with an average home income of $70,000, the purchasing 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 purchasing power in households' due to both moms and dads contributing towards the family income, we can see that the entertainment service has a great deal of capacity for market gamers.
While technological aspects have contributed towards lowering the expense of entertainment with the introduction of multimedia, reality based home entertainment, home theatres, cable networks, the pressure on theatres has actually increased in regard to making the theatre experience richer for customers in order to make it more attractive than seeing motion pictures in the house. Additionally, while developments have actually contributed towards the threat of 'piracy' they have also contributed towards ease of storing and dispersing movies.