As far as the legal and political elements are concerned, the entire film industry is impacted by the threat of piracy which might potentially produce a negative effect on the total earnings of the movie industry. Having said that, copyright laws use defense to the film industry in regards to dissuading piracy.
While the political and legal environment uses defense to film makers, globalization and development of technological elements have increased legal challenges such as ease of piracy and breaching copyright rights.
It ought to be kept in mind that motion pictures are part of the show business while expenditure on any form of home entertainment is generally an optional expenditure which is more or a high-end instead of a necessity. Nevertheless, we take a 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 cause a modification in this specific home entertainment.
As far as the social-cultural factors are worried, it needs to be noted that the 70% of IMAX viewers are between the ages of 19 and 56 which allows a lot of diversity when it concerns opting for a particular section. Additionally with majority of the audiences being college or university students with a typical home income of $70,000, the acquiring power of the target audience reveals possibilities of increasing viewership.
With factors such as 'moms and dads revealing an interest in their children's option of home entertainment' and 'greater buying power in families' due to both parents contributing towards the home income, we can see that the home entertainment service has a lot of potential for industry gamers.
While technological factors have contributed towards lowering the cost of entertainment with the intro of multimedia, reality based entertainment, house theatres, cable television networks, the pressure on theatres has increased in term of making the theatre experience richer for consumers in order to make it more attractive than enjoying movies in the house. Additionally, while innovations have actually contributed towards the hazard of 'piracy' they have likewise contributed towards ease of saving and distributing films.