As far as the political and legal factors are concerned, the entire film industry is affected by the risk of piracy which could possibly bring about a negative influence on the general earnings of the movie industry. Having said that, copyright laws offer protection to the film industry in terms of dissuading piracy.
While the legal and political environment offers defense to movie makers, globalization and advancement of technological factors have increased legal difficulties such as ease of piracy and breaching intellectual property rights.
It needs to be noted that motion pictures belong to the show business while expense on any form of home entertainment is generally an optional expense which is more or a high-end instead of a necessity. However, we look at the contrast of the GDP pattern with the pattern in demand for motion pictures, we can see that the two are not straight proportional recommending that any change in GDP development does not necessarily cause a modification in this specific home entertainment.
As far as the social-cultural elements are concerned, it needs to 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 pertains to opting for a particular sector. Furthermore with majority of the audiences being college or university students with a typical family income 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 choice of home entertainment' and 'greater buying power in homes' due to both moms and dads contributing towards the family earnings, we can see that the entertainment company has a lot of potential for market players.
While technological elements have actually contributed towards lowering the cost of entertainment with the intro of multimedia, truth based 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 appealing than seeing motion pictures at home. Additionally, while innovations have actually contributed towards the danger of 'piracy' they have also contributed towards ease of storing and distributing films.