As far as the political and legal factors are worried, the whole movie market is impacted by the danger of piracy which might possibly cause a negative influence on the general income of the movie market. Having stated that, copyright laws offer protection to the movie market in terms of preventing piracy.
While the political and legal environment offers protection to movie makers, globalization and improvement of technological elements have increased legal obstacles such as ease of piracy and violating intellectual property rights.
It must be noted that films are part of the entertainment industry while expenditure on any form of entertainment is generally an optional expense which is more or a luxury instead of a requirement. Nevertheless, we take a look at the contrast of the GDP trend with the pattern in demand for films, we can see that the two are not directly proportional suggesting that any change in GDP development does not always bring about a modification in this specific home entertainment.
As far as the social-cultural elements are worried, it must be noted that the 70% of IMAX audiences are in between the ages of 19 and 56 which allows a lot of diversity when it concerns going with a particular section. In addition with majority of the audiences being college or university students with a typical household earnings of $70,000, the purchasing power of the target market shows possibilities of increasing viewership.
With factors such as 'parents showing an interest in their children's choice of entertainment' and 'greater buying power in families' due to both parents contributing towards the family income, we can see that the entertainment business has a lot of potential for market gamers.
While technological factors have actually contributed towards reducing the expense of entertainment with the intro of multimedia, truth based home entertainment, house theatres, cable networks, the pressure on theatres has actually increased in regard to making the theatre experience richer for customers in order to make it more appealing than watching movies in the house. In addition, while developments have actually contributed towards the risk of 'piracy' they have also contributed towards ease of keeping and dispersing films.