As far as the political and legal factors are worried, the whole film market is impacted by the threat of piracy which might potentially cause a negative effect on the general earnings of the movie industry. Having said that, copyright laws use protection to the film industry in regards to discouraging piracy.
While the political and legal environment provides security to movie makers, globalization and advancement of technological aspects have increased legal difficulties such as ease of piracy and breaching copyright rights.
It ought to be noted that motion pictures become part of the show business while expenditure on any form of entertainment is basically an optional expenditure which is more or a luxury rather than a requirement. Nevertheless, we look at the comparison of the GDP trend with the trend in demand for films, we can see that the two are not directly proportional suggesting that any modification in GDP development does not always cause a modification in this specific entertainment.
As far as the social-cultural factors are worried, it must be kept in mind that the 70% of IMAX viewers are between the ages of 19 and 56 which permits a great deal of variety when it pertains to choosing a particular section. Furthermore with majority of the audiences being college or university students with a typical home earnings of $70,000, the purchasing power of the target audience reveals possibilities of increasing viewership.
With elements such as 'moms and dads revealing an interest in their children's choice of home entertainment' and 'higher purchasing power in households' due to both moms and dads contributing towards the household income, we can see that the home entertainment organisation has a great deal of capacity for industry gamers.
While technological elements have actually contributed towards lowering the cost of home entertainment with the introduction of multimedia, truth based 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 watching motion pictures in the house. In addition, while innovations have actually contributed towards the risk of 'piracy' they have also contributed towards ease of storing and dispersing movies.