As far as the political and legal aspects are concerned, the entire movie industry is affected by the threat of piracy which could possibly produce a negative effect on the overall revenue of the movie market. Having stated that, copyright laws offer defense to the film market in terms of dissuading piracy.
While the political and legal environment offers defense to movie makers, globalization and advancement of technological factors have actually increased legal obstacles such as ease of piracy and breaking intellectual property rights.
It ought to be noted that movies become part of the show business while expenditure on any form of entertainment is basically an optional cost which is more or a high-end instead of a requirement. Nevertheless, we look at the contrast of the GDP trend with the pattern in demand for motion pictures, we can see that the two are not directly proportional suggesting that any modification in GDP development does not necessarily produce a change in this particular home entertainment.
As far as the social-cultural elements are concerned, 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 choosing a particular section. Additionally with bulk of the viewers being college or university students with a typical household income of $70,000, the buying power of the target audience shows possibilities of increasing viewership.
With factors such as 'moms and dads revealing an interest in their kids's option of entertainment' and 'greater purchasing power in families' due to both moms and dads contributing towards the household income, we can see that the home entertainment company has a lot of potential for market players.
While technological elements have actually contributed towards lowering the cost of entertainment with the intro of multimedia, truth based home entertainment, house theatres, cable television networks, the pressure on theatres has increased in term of making the theatre experience richer for consumers in order to make it more attractive than watching motion pictures at home. Additionally, while developments have contributed towards the danger of 'piracy' they have actually also contributed towards ease of saving and distributing films.