As far as the legal and political aspects are concerned, the whole film industry is affected by the hazard of piracy which might potentially bring about a negative influence on the total profits of the film industry. Having said that, copyright laws offer security to the movie market in regards to discouraging piracy.
While the legal and political environment uses security to film makers, globalization and improvement of technological elements have actually increased legal difficulties such as ease of piracy and violating intellectual property rights.
It ought to be noted that motion pictures become part of the entertainment industry while expense on any form of home entertainment is generally an optional cost which is more or a luxury instead of a requirement. However, we look at the comparison of the GDP pattern with the trend in demand for movies, we can see that the two are not directly proportional suggesting that any modification in GDP growth does not necessarily bring about a modification in this specific entertainment.
As far as the social-cultural elements are concerned, it must be noted that the 70% of IMAX viewers are between the ages of 19 and 56 which enables a lot of variety when it concerns choosing a specific segment. In addition with bulk of the audiences being college or university students with an average family earnings of $70,000, the acquiring power of the target market shows possibilities of increasing viewership.
With factors such as 'parents showing an interest in their children's option of entertainment' and 'higher buying power in families' due to both parents contributing towards the household income, we can see that the home entertainment company has a lot of potential for market gamers.
While technological elements have contributed towards lowering the cost of entertainment with the intro of multimedia, reality based home entertainment, home theatres, cable 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 watching movies at home. Additionally, while innovations have actually contributed towards the danger of 'piracy' they have also contributed towards ease of storing and distributing movies.