As far as the political and legal aspects are concerned, the whole film market is affected by the risk of piracy which could possibly produce a negative influence on the general revenue of the movie market. Having said that, copyright laws offer security to the movie industry in terms of discouraging piracy.
While the political and legal environment uses protection to film makers, globalization and advancement of technological factors have increased legal challenges such as ease of piracy and violating intellectual property rights.
It should be noted that films are part of the entertainment industry while expenditure on any form of entertainment is generally an optional expense which is more or a luxury rather than a need. We look at the contrast of the GDP trend with the trend in need for motion pictures, we can see that the two are not directly proportional recommending that any modification in GDP growth does not always bring about a modification in this particular home entertainment.
As far as the social-cultural factors are worried, it needs to be noted that the 70% of IMAX audiences are in between the ages of 19 and 56 which allows a great deal of variety when it concerns choosing a specific segment. Furthermore with majority of the audiences being college or university students with an average home earnings of $70,000, the purchasing power of the target market shows possibilities of increasing viewership.
With elements such as 'moms and dads revealing an interest in their children's option of entertainment' and 'greater purchasing power in homes' due to both parents contributing towards the household income, we can see that the entertainment organisation has a great deal of capacity for market players.
While technological aspects have actually contributed towards reducing the expense of entertainment with the intro of multimedia, reality based home entertainment, home 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 seeing films in the house. Furthermore, while innovations have contributed towards the danger of 'piracy' they have actually also contributed towards ease of saving and dispersing movies.