As far as the legal and political elements are worried, the entire movie market is impacted by the risk of piracy which might potentially bring about an unfavorable effect on the overall profits of the movie industry. Having stated that, copyright laws provide security to the film industry in terms of dissuading piracy.
While the political and legal environment uses protection to film makers, globalization and advancement of technological factors have actually increased legal challenges such as ease of piracy and violating intellectual property rights.
It must be kept in mind that motion pictures become part of the entertainment industry while expense on any form of entertainment is basically an optional cost which is more or a luxury instead of a requirement. 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 straight proportional suggesting that any modification in GDP development does not always bring about a change in this particular home entertainment.
As far as the social-cultural factors are concerned, 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 variety when it comes to opting for a specific sector. Additionally with majority of the viewers being college or university students with a typical home income of $70,000, the buying power of the target audience reveals possibilities of increasing viewership.
With aspects such as 'moms and dads showing an interest in their kids's option of entertainment' and 'greater buying power in families' due to both moms and dads contributing towards the family income, we can see that the home entertainment organisation has a lot of potential for industry gamers.
While technological elements have contributed towards decreasing the cost of home entertainment with the intro of multimedia, reality based home entertainment, home theatres, cable 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 seeing films in the house. In addition, while developments have actually contributed towards the threat of 'piracy' they have actually also contributed towards ease of saving and dispersing movies.