As far as the political and legal factors are worried, the whole movie market is impacted by the risk of piracy which could possibly cause an unfavorable effect on the general earnings of the movie market. Having stated that, copyright laws use protection to the film market in regards to dissuading piracy.
While the legal and political environment provides protection to film makers, globalization and improvement of technological factors have increased legal obstacles such as ease of piracy and breaking copyright rights.
It should be noted that motion pictures are part of the show business while expenditure on any kind of entertainment is essentially an optional cost which is more or a luxury instead of a necessity. However, we take a look at the comparison 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 change in GDP development does not always bring about a change in this particular home entertainment.
As far as the social-cultural factors are worried, it should be noted that the 70% of IMAX audiences are between the ages of 19 and 56 which allows a great deal of diversity when it comes to going with a particular segment. In addition with majority of the viewers being college or university students with an average family earnings of $70,000, the purchasing power of the target market shows possibilities of increasing viewership.
With elements such as 'moms and dads revealing an interest in their kids's option of entertainment' and 'greater buying power in homes' due to both moms and dads contributing towards the home earnings, we can see that the home entertainment business has a great deal of capacity for industry players.
While technological aspects have contributed towards decreasing the cost of home entertainment with the intro of multimedia, reality based entertainment, house theatres, cable television networks, the pressure on theatres has increased in regard to making the theatre experience richer for consumers in order to make it more appealing than viewing movies in your home. Furthermore, while developments have contributed towards the hazard of 'piracy' they have actually likewise contributed towards ease of keeping and distributing films.