As far as the political and legal aspects are concerned, the entire film industry is impacted by the risk of piracy which might potentially bring about an unfavorable effect on the total profits of the film market. Having stated that, copyright laws use defense to the film industry in terms of preventing piracy.
While the political and legal environment uses defense to film makers, globalization and improvement of technological elements have actually increased legal difficulties such as ease of piracy and breaching copyright rights.
It must be noted that films belong to the entertainment industry while expense on any form of home entertainment is basically an optional expense which is more or a high-end rather than a necessity. Nevertheless, we take a look at the comparison of the GDP trend with the pattern in demand for movies, we can see that the two are not directly proportional suggesting that any change in GDP growth does not necessarily bring about a change in this specific home entertainment.
As far as the social-cultural aspects are worried, it needs to be kept in mind that the 70% of IMAX viewers are between the ages of 19 and 56 which enables a great deal of variety when it concerns choosing a specific segment. Furthermore with majority of the audiences being college or university students with an average family income of $70,000, the acquiring power of the target market reveals possibilities of increasing viewership.
With aspects such as 'parents showing an interest in their children's option of home entertainment' and 'greater buying power in households' due to both parents contributing towards the household earnings, we can see that the home entertainment service has a great deal of potential for market gamers.
While technological elements have actually contributed towards reducing the cost of home entertainment with the introduction 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 consumers in order to make it more appealing than enjoying films at home. In addition, while innovations have actually contributed towards the threat of 'piracy' they have also contributed towards ease of saving and dispersing films.