As far as the legal and political factors are concerned, the entire movie industry is affected by the threat of piracy which could possibly cause an unfavorable influence on the general profits of the film market. Having stated that, copyright laws offer protection to the movie industry in regards to discouraging piracy.
While the political and legal environment offers defense to movie makers, globalization and development of technological factors have increased legal difficulties such as ease of piracy and breaching copyright rights.
It must be noted that films become part of the entertainment industry while expenditure on any type of home entertainment is basically an optional cost which is more or a high-end rather than a requirement. Nevertheless, we take a look at the comparison of the GDP pattern with the trend in demand for movies, we can see that the two are not straight proportional recommending that any modification in GDP growth does not necessarily bring about a modification in this particular home entertainment.
As far as the social-cultural factors are concerned, it should be kept in mind that the 70% of IMAX viewers are in between the ages of 19 and 56 which permits a great deal of diversity when it concerns opting for a specific section. In addition with majority of the viewers being college or university students with a typical home income of $70,000, the buying power of the target market shows possibilities of increasing viewership.
With aspects such as 'parents showing an interest in their kids's option of entertainment' and 'greater buying power in homes' due to both moms and dads contributing towards the home earnings, we can see that the entertainment organisation has a lot of potential for industry players.
While technological aspects have actually contributed towards reducing the cost of home entertainment with the intro of multimedia, reality based entertainment, house theatres, cable television networks, the pressure on theatres has actually increased in term of making the theatre experience richer for consumers in order to make it more appealing than viewing movies in your home. In addition, while developments have contributed towards the threat of 'piracy' they have actually also contributed towards ease of saving and dispersing movies.