As far as the legal and political factors are worried, the whole film industry is affected by the risk of piracy which could possibly cause a negative effect on the general earnings of the film industry. Having said that, copyright laws offer protection to the film industry in regards to dissuading piracy.
While the political and legal environment provides security to movie makers, globalization and advancement of technological factors have increased legal challenges such as ease of piracy and breaking copyright rights.
It needs to be noted that movies become part of the show business while expenditure on any kind of entertainment is generally an optional expenditure which is more or a high-end instead of a need. We look at the comparison of the GDP trend with the pattern in demand for motion pictures, we can see that the 2 are not directly proportional suggesting that any modification in GDP development does not always bring about a change in this particular entertainment.
As far as the social-cultural aspects are worried, it must be noted that the 70% of IMAX audiences are between the ages of 19 and 56 which enables a great deal of variety when it comes to choosing a particular segment. Furthermore with bulk of the viewers being college or university students with an average home 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 kids's choice of home entertainment' and 'greater buying power in families' due to both parents contributing towards the family earnings, we can see that the entertainment business has a great deal of capacity for industry gamers.
While technological aspects have contributed towards decreasing the expense of entertainment with the intro of multimedia, truth based 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 appealing than seeing motion pictures in the house. In addition, while innovations have contributed towards the threat of 'piracy' they have actually also contributed towards ease of keeping and dispersing movies.