As far as the legal and political aspects are concerned, the whole movie industry is impacted by the risk of piracy which could potentially produce an unfavorable effect on the total income of the movie industry. Having said that, copyright laws use protection to the movie market in regards to discouraging piracy.
While the legal and political environment uses security to film makers, globalization and improvement of technological factors have increased legal difficulties such as ease of piracy and violating copyright rights.
It needs to be kept in mind that motion pictures belong to the show business while expenditure on any form of entertainment is basically an optional expense which is more or a luxury rather than a necessity. We look at the comparison of the GDP pattern with the trend in need for films, we can see that the 2 are not straight proportional suggesting that any change in GDP growth does not necessarily bring about a modification in this specific home entertainment.
As far as the social-cultural aspects are concerned, it needs to be kept in mind that the 70% of IMAX viewers are between the ages of 19 and 56 which enables a lot of diversity when it comes to selecting a specific section. Additionally with majority of the audiences being college or university students with a typical family income of $70,000, the buying power of the target audience reveals possibilities of increasing viewership.
With factors such as 'moms and dads revealing an interest in their children's choice of entertainment' and 'higher purchasing power in households' due to both parents contributing towards the home earnings, we can see that the entertainment company has a great deal of potential for industry gamers.
While technological factors have contributed towards decreasing the cost of entertainment with the introduction of multimedia, truth based home entertainment, house theatres, cable television networks, the pressure on theatres has actually increased in term of making the theatre experience richer for customers in order to make it more attractive than watching movies at home. Additionally, while developments have actually contributed towards the danger of 'piracy' they have actually also contributed towards ease of keeping and distributing movies.