As far as the political and legal aspects are concerned, the entire movie market is affected by the danger of piracy which might possibly produce a negative effect on the overall income of the movie industry. Having said that, copyright laws use defense to the movie market in regards to discouraging piracy.
While the political and legal environment provides protection to movie makers, globalization and improvement of technological elements have actually increased legal challenges such as ease of piracy and breaking copyright rights.
It needs to be noted that movies are part of the entertainment industry while expense on any kind of entertainment is essentially an optional cost which is more or a luxury instead of a requirement. We look at the comparison of the GDP pattern with the pattern in need for films, we can see that the two are not straight proportional recommending that any modification in GDP growth does not always bring about a change in this particular home entertainment.
As far as the social-cultural factors are worried, it should be noted that the 70% of IMAX audiences are in between the ages of 19 and 56 which enables a great deal of diversity when it concerns choosing a specific section. Furthermore with bulk of the viewers being college or university students with an average home earnings of $70,000, the acquiring power of the target audience shows possibilities of increasing viewership.
With aspects such as 'moms and dads revealing an interest in their children's choice of entertainment' and 'greater purchasing power in households' due to both parents contributing towards the family income, we can see that the entertainment organisation has a great deal of capacity for industry players.
While technological factors have actually contributed towards lowering the expense of home 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 attractive than viewing movies in the house. Furthermore, while developments have contributed towards the risk of 'piracy' they have likewise contributed towards ease of keeping and distributing movies.