As far as the legal and political aspects are concerned, the whole movie industry is impacted by the danger of piracy which could potentially bring about an unfavorable impact on the overall profits of the film market. Having said that, copyright laws use security to the movie industry in terms of dissuading piracy.
While the political and legal environment offers security to film makers, globalization and advancement of technological factors have actually increased legal difficulties such as ease of piracy and breaking copyright rights.
It needs to be kept in mind that movies belong to the show business while expense on any form of entertainment is generally an optional expense which is more or a high-end rather than a requirement. We 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 suggesting that any modification in GDP growth does not always bring about a modification in this particular entertainment.
As far as the social-cultural factors are concerned, it ought to be noted that the 70% of IMAX audiences are between the ages of 19 and 56 which enables a lot of diversity when it comes to going with a particular segment. In addition with majority of the viewers being college or university students with an average household income of $70,000, the acquiring power of the target market reveals possibilities of increasing viewership.
With factors such as 'parents revealing an interest in their children's option of entertainment' and 'higher buying power in households' due to both parents contributing towards the home income, we can see that the entertainment company has a great deal of capacity for market gamers.
While technological factors have contributed towards reducing the cost of entertainment with the introduction 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 customers in order to make it more attractive than viewing motion pictures in your home. In addition, while developments have contributed towards the danger of 'piracy' they have actually likewise contributed towards ease of storing and dispersing films.