As far as the political and legal factors are worried, the whole film industry is affected by the hazard of piracy which could possibly produce a negative impact on the general profits of the film market. Having said that, copyright laws offer defense to the movie market in terms of dissuading piracy.
While the political and legal environment uses defense to movie makers, globalization and development of technological aspects have actually increased legal difficulties such as ease of piracy and violating copyright rights.
It should be kept in mind that motion pictures are part of the show business while expense on any kind of entertainment is essentially an optional expenditure which is more or a luxury instead of a necessity. We look at the comparison of the GDP trend with the pattern in demand for movies, we can see that the two are not straight proportional suggesting that any modification in GDP development does not always bring about a modification in this particular home entertainment.
As far as the social-cultural factors are worried, it should be kept in mind that the 70% of IMAX viewers are in between the ages of 19 and 56 which allows a lot of diversity when it comes to opting for a particular section. In addition with majority of the audiences being college or university students with a typical home income of $70,000, the acquiring power of the target market reveals possibilities of increasing viewership.
With elements such as 'parents revealing an interest in their kids's choice of entertainment' and 'higher buying power in households' due to both parents contributing towards the home income, we can see that the entertainment organisation has a great deal of potential for market players.
While technological elements have contributed towards lowering the cost of home entertainment with the intro of multimedia, truth based home entertainment, house theatres, cable networks, the pressure on theatres has increased in regard to making the theatre experience richer for consumers in order to make it more attractive than viewing films in your home. Furthermore, while developments have contributed towards the threat of 'piracy' they have actually also contributed towards ease of storing and dispersing movies.