As far as the legal and political elements are worried, the whole film industry is affected by the hazard of piracy which could possibly produce an unfavorable impact on the general earnings of the movie industry. Having said that, copyright laws provide protection to the film industry in regards to discouraging piracy.
While the political and legal environment uses security to movie makers, globalization and advancement of technological aspects have increased legal difficulties such as ease of piracy and breaking copyright rights.
It needs to be noted that motion pictures belong to the entertainment industry while expenditure on any kind of home entertainment is basically an optional cost which is more or a luxury rather than a necessity. However, we take a look at the comparison of the GDP trend with the pattern in demand for films, we can see that the two are not straight proportional suggesting that any change in GDP development does not always cause a modification in this particular home entertainment.
As far as the social-cultural aspects are concerned, it ought to be noted that the 70% of IMAX viewers are between the ages of 19 and 56 which enables a great deal of variety when it concerns opting for a specific section. Furthermore with majority of the audiences being college or university students with a typical family earnings of $70,000, the purchasing power of the target market reveals possibilities of increasing viewership.
With factors such as 'moms and dads showing an interest in their kids's option of home entertainment' and 'greater buying power in homes' due to both moms and dads contributing towards the family income, we can see that the home entertainment service has a lot of capacity for market players.
While technological factors have contributed towards reducing the expense of entertainment with the introduction of multimedia, truth based home entertainment, house theatres, cable television networks, the pressure on theatres has increased in regard to making the theatre experience richer for consumers in order to make it more appealing than watching films at home. In addition, while developments have contributed towards the danger of 'piracy' they have likewise contributed towards ease of storing and distributing movies.