As far as the political and legal elements are worried, the entire film market is affected by the threat of piracy which might possibly produce a negative effect on the total profits of the movie industry. Having stated that, copyright laws offer protection to the film market in terms of discouraging piracy.
While the political and legal environment offers protection to movie makers, globalization and advancement of technological factors have actually increased legal challenges such as ease of piracy and breaching copyright rights.
It must be kept in mind that films belong to the show business while expense on any kind of home entertainment is basically an optional expense which is more or a high-end rather than a need. Nevertheless, we take a look at the comparison of the GDP trend with the trend in demand for movies, we can see that the two are not straight proportional suggesting that any modification in GDP growth does not necessarily cause a modification in this particular home entertainment.
As far as the social-cultural factors are worried, it must be noted that the 70% of IMAX viewers are between the ages of 19 and 56 which allows a lot of variety when it concerns going with a specific section. Additionally with majority of the viewers being college or university students with an average family earnings of $70,000, the purchasing power of the target audience shows possibilities of increasing viewership.
With elements such as 'moms and dads revealing an interest in their children's choice of entertainment' and 'greater purchasing power in homes' due to both parents contributing towards the household income, we can see that the home entertainment organisation has a great deal of potential for industry players.
While technological factors have contributed towards lowering the cost of home entertainment with the intro of multimedia, reality based home entertainment, home theatres, cable networks, the pressure on theatres has increased in term of making the theatre experience richer for consumers in order to make it more appealing than watching movies at home. In addition, while developments have contributed towards the hazard of 'piracy' they have also contributed towards ease of saving and distributing movies.