As far as the legal and political factors are concerned, the entire film market is affected by the hazard of piracy which could possibly produce a negative impact on the total profits of the film industry. Having stated that, copyright laws offer defense to the film market in regards to preventing piracy.
While the legal and political environment provides protection to movie makers, globalization and advancement of technological aspects have increased legal obstacles such as ease of piracy and violating intellectual property rights.
It should be noted that motion pictures belong to the show business while expense on any kind of entertainment is basically an optional cost which is more or a luxury rather than a requirement. We look at the contrast of the GDP pattern with the trend in need for movies, we can see that the two are not straight proportional suggesting that any modification in GDP growth does not always bring about a change in this particular home entertainment.
As far as the social-cultural elements are concerned, it must be kept in mind that the 70% of IMAX audiences are in between the ages of 19 and 56 which permits a great deal of diversity when it concerns opting for a particular section. In addition with bulk of the viewers being college or university students with a typical household income of $70,000, the purchasing power of the target market shows possibilities of increasing viewership.
With factors such as 'parents showing an interest in their children's option of entertainment' and 'higher purchasing power in families' due to both moms and dads contributing towards the household income, we can see that the entertainment service has a great deal of potential for market players.
While technological factors have contributed towards lowering the cost of home entertainment with the introduction of multimedia, truth based entertainment, house theatres, cable networks, the pressure on theatres has increased in regard to making the theatre experience richer for customers in order to make it more attractive than enjoying movies at home. Furthermore, while developments have actually contributed towards the hazard of 'piracy' they have likewise contributed towards ease of keeping and dispersing films.