As far as the political and legal factors are concerned, the entire movie market is impacted by the risk of piracy which might potentially cause a negative influence on the general earnings of the movie industry. Having said that, copyright laws use protection to the film industry in terms of dissuading piracy.
While the political and legal environment offers protection to film makers, globalization and development of technological aspects have increased legal challenges such as ease of piracy and breaching copyright rights.
It should be kept in mind that movies become part of the show business while expense on any type of entertainment is essentially an optional expense which is more or a high-end rather than a need. However, we look at the contrast of the GDP pattern with the trend in demand for films, we can see that the two are not straight proportional recommending that any change in GDP development does not always bring about a modification in this particular entertainment.
As far as the social-cultural aspects are worried, it should be kept in mind 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 selecting a specific section. Furthermore with bulk of the audiences being college or university students with an average family income of $70,000, the purchasing power of the target market reveals possibilities of increasing viewership.
With elements such as 'moms and dads revealing an interest in their kids's choice of home entertainment' and 'greater purchasing power in families' due to both parents contributing towards the family earnings, we can see that the home entertainment business has a lot of potential for industry gamers.
While technological elements have contributed towards decreasing the cost of home entertainment with the introduction of multimedia, truth based entertainment, home theatres, cable television 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 watching movies at home. In addition, while innovations have actually contributed towards the hazard of 'piracy' they have likewise contributed towards ease of keeping and distributing films.