As far as the legal and political factors are concerned, the whole film industry is affected by the threat of piracy which might possibly cause a negative influence on the general profits of the film industry. Having stated that, copyright laws offer protection to the movie industry in regards to discouraging piracy.
While the legal and political environment provides security to film makers, globalization and advancement of technological aspects have increased legal difficulties such as ease of piracy and breaking intellectual property rights.
It ought to be kept in mind that films become part of the entertainment industry while expenditure on any kind of home entertainment is basically an optional cost which is more or a high-end rather than a need. Nevertheless, we look at the contrast of the GDP pattern with the trend in demand for movies, we can see that the two are not directly proportional recommending that any change in GDP development does not necessarily bring about a change in this particular entertainment.
As far as the social-cultural factors are concerned, it needs to be noted that the 70% of IMAX viewers are between the ages of 19 and 56 which allows a great deal of diversity when it pertains to choosing a particular sector. Furthermore with bulk of the audiences being college or university students with an average family earnings of $70,000, the acquiring power of the target audience reveals possibilities of increasing viewership.
With factors such as 'moms and dads revealing an interest in their children's choice of home entertainment' and 'greater buying power in households' due to both parents contributing towards the family income, we can see that the home entertainment service has a lot of capacity for industry players.
While technological factors have contributed towards decreasing the cost of entertainment with the intro of multimedia, truth based home entertainment, home theatres, cable television networks, the pressure on theatres has actually increased in term of making the theatre experience richer for consumers in order to make it more attractive than seeing motion pictures at home. Furthermore, while developments have contributed towards the hazard of 'piracy' they have likewise contributed towards ease of storing and distributing movies.