As far as the legal and political elements are worried, the entire movie market is impacted by the danger of piracy which might potentially bring about an unfavorable effect on the total revenue of the movie industry. Having said that, copyright laws provide security to the movie market in terms of dissuading piracy.
While the legal and political environment offers security to film makers, globalization and development of technological aspects have actually increased legal difficulties such as ease of piracy and breaking intellectual property rights.
It should be kept in mind that films become part of the show business while expense on any type of home entertainment is essentially an optional expense which is more or a high-end rather than a need. Nevertheless, we look at the contrast of the GDP pattern with the trend in demand for motion pictures, we can see that the two are not straight proportional suggesting that any change in GDP growth does not always produce a modification in this specific entertainment.
As far as the social-cultural aspects are worried, it must be kept in mind that the 70% of IMAX viewers are in between the ages of 19 and 56 which allows a lot of variety when it comes to choosing a specific sector. Furthermore with bulk of the viewers being college or university students with an average household earnings of $70,000, the buying power of the target audience reveals possibilities of increasing viewership.
With factors such as 'parents revealing an interest in their children's option of entertainment' and 'greater purchasing power in households' due to both moms and dads contributing towards the family income, we can see that the entertainment service has a great deal of capacity for industry players.
While technological aspects have actually contributed towards reducing the cost of home entertainment with the introduction of multimedia, reality based home entertainment, home theatres, cable television networks, the pressure on theatres has increased in regard to making the theatre experience richer for consumers in order to make it more appealing than viewing motion pictures in your home. Furthermore, while innovations have contributed towards the risk of 'piracy' they have also contributed towards ease of keeping and distributing movies.