As far as the legal and political elements are concerned, the entire movie market is affected by the risk of piracy which could potentially cause a negative effect on the total profits of the film market. Having stated that, copyright laws use defense to the movie market in terms of preventing piracy.
While the political and legal environment uses defense to movie makers, globalization and advancement of technological elements have actually increased legal obstacles such as ease of piracy and breaching copyright rights.
It ought to be noted that movies become part of the show business while expenditure on any kind of entertainment is generally an optional expenditure which is more or a high-end instead of a requirement. However, we look at the comparison of the GDP trend with the pattern in demand for motion pictures, we can see that the two are not straight proportional recommending that any modification in GDP growth does not always produce a change in this particular entertainment.
As far as the social-cultural elements are concerned, it needs to be kept in mind that the 70% of IMAX audiences are in between the ages of 19 and 56 which permits a lot of diversity when it comes to going with a particular section. In addition with majority of the audiences being college or university students with an average home earnings of $70,000, the buying power of the target audience shows possibilities of increasing viewership.
With aspects such as 'parents showing an interest in their children's option of entertainment' and 'higher buying power in homes' due to both parents contributing towards the household earnings, we can see that the home entertainment company has a great deal of potential for market players.
While technological elements have actually contributed towards reducing the expense of entertainment with the introduction of multimedia, truth based entertainment, house theatres, cable networks, the pressure on theatres has actually increased in term of making the theatre experience richer for customers in order to make it more attractive than seeing motion pictures at home. Additionally, while innovations have contributed towards the hazard of 'piracy' they have actually also contributed towards ease of keeping and distributing movies.