As far as the legal and political aspects are worried, the entire film industry is impacted by the risk of piracy which could potentially produce an unfavorable influence on the general earnings of the film market. Having stated that, copyright laws offer protection to the movie industry in regards to discouraging piracy.
While the political and legal environment uses protection to film makers, globalization and development of technological factors have actually increased legal obstacles such as ease of piracy and violating copyright rights.
It ought to be kept in mind that films are part of the entertainment industry while expenditure on any form of entertainment is generally an optional expenditure which is more or a luxury rather than a need. We look at the comparison of the GDP trend with the pattern in need for films, we can see that the two are not straight proportional suggesting that any modification in GDP growth does not necessarily bring about a modification in this specific home entertainment.
As far as the social-cultural aspects are worried, it ought to be noted that the 70% of IMAX audiences are between the ages of 19 and 56 which allows a lot of diversity when it pertains to opting for a particular segment. Furthermore with majority of the audiences being college or university students with a typical household earnings of $70,000, the acquiring power of the target audience reveals possibilities of increasing viewership.
With aspects such as 'moms and dads revealing an interest in their children's option of home entertainment' and 'greater purchasing power in families' due to both moms and dads contributing towards the household earnings, we can see that the home entertainment service has a lot of potential for market players.
While technological elements have contributed towards decreasing the expense of home entertainment with the intro of multimedia, reality based home entertainment, house theatres, cable television networks, the pressure on theatres has increased in term of making the theatre experience richer for customers in order to make it more appealing than enjoying films at home. Furthermore, while developments have contributed towards the risk of 'piracy' they have actually also contributed towards ease of storing and dispersing films.