As far as the political and legal factors are concerned, the whole film industry is impacted by the threat of piracy which might potentially cause a negative impact on the general profits of the movie market. Having stated that, copyright laws offer security to the film industry in terms of preventing piracy.
While the political and legal environment uses defense to film makers, globalization and improvement of technological factors have actually increased legal obstacles such as ease of piracy and breaching copyright rights.
It should be noted that movies become part of the entertainment industry while expenditure on any type of entertainment is essentially an optional expense which is more or a luxury instead of a requirement. We look at the comparison of the GDP pattern with the trend in demand for movies, we can see that the 2 are not directly proportional recommending that any change in GDP growth does not always bring about a modification in this particular entertainment.
As far as the social-cultural aspects are concerned, it should be kept in mind that the 70% of IMAX audiences are between the ages of 19 and 56 which enables a lot of diversity when it concerns choosing a particular sector. Furthermore with bulk of the audiences being college or university students with an average home income of $70,000, the acquiring power of the target audience shows possibilities of increasing viewership.
With factors such as 'moms and dads revealing an interest in their kids's option of home entertainment' and 'higher purchasing power in homes' due to both moms and dads contributing towards the family income, we can see that the entertainment company has a lot of capacity for industry players.
While technological elements have actually contributed towards reducing the expense of home entertainment with the introduction of multimedia, reality based home entertainment, house theatres, cable television networks, the pressure on theatres has actually increased in regard to making the theatre experience richer for consumers in order to make it more appealing than viewing films in the house. Furthermore, while innovations have contributed towards the hazard of 'piracy' they have actually also contributed towards ease of storing and dispersing movies.