As far as the political and legal factors are worried, the whole movie market is affected by the hazard of piracy which could possibly produce a negative impact on the overall earnings of the film market. Having stated that, copyright laws use security to the film industry in regards to discouraging piracy.
While the political and legal environment uses defense to movie makers, globalization and improvement of technological factors have increased legal challenges such as ease of piracy and breaching intellectual property rights.
It ought to be kept in mind that movies become part of the show business while expenditure on any type of home entertainment is basically an optional expenditure which is more or a luxury rather than a need. We look at the comparison of the GDP trend with the trend in demand for motion pictures, we can see that the two are not straight proportional suggesting that any change in GDP growth does not necessarily bring about a change in this specific entertainment.
As far as the social-cultural aspects are concerned, it ought to be noted that the 70% of IMAX viewers are in between the ages of 19 and 56 which allows a lot of diversity when it comes to opting for a particular section. Furthermore with majority of the viewers being college or university students with a typical household earnings of $70,000, the acquiring power of the target market shows possibilities of increasing viewership.
With elements such as 'moms and dads revealing an interest in their children's option of entertainment' and 'higher buying power in families' due to both moms and dads 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 actually contributed towards decreasing the cost of home entertainment with the introduction of multimedia, reality based home entertainment, home 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 attractive than seeing motion pictures in your home. Furthermore, while developments have actually contributed towards the risk of 'piracy' they have actually also contributed towards ease of keeping and dispersing movies.