As far as the legal and political aspects are concerned, the entire movie market is affected by the hazard of piracy which might possibly produce a negative impact on the total profits of the film industry. Having said that, copyright laws offer protection to the film industry in regards to preventing piracy.
While the political and legal environment offers defense to film makers, globalization and improvement of technological factors have increased legal difficulties such as ease of piracy and breaching intellectual property rights.
It ought to be noted that films are part of the entertainment industry while expense on any type of entertainment is basically an optional expense which is more or a luxury instead of a need. We look at the contrast of the GDP pattern with the trend in demand for motion pictures, we can see that the two are not straight proportional suggesting that any modification in GDP development does not always bring about a change in this particular entertainment.
As far as the social-cultural aspects are worried, it needs to be kept in mind that the 70% of IMAX audiences are between the ages of 19 and 56 which enables a lot of variety when it pertains to selecting a specific section. In addition with majority of the viewers being college or university students with an average household earnings of $70,000, the acquiring power of the target audience shows possibilities of increasing viewership.
With elements such as 'parents revealing an interest in their children's choice of home entertainment' and 'higher buying power in homes' due to both parents contributing towards the household income, we can see that the home entertainment company has a great deal of capacity for industry players.
While technological elements have actually contributed towards reducing the cost of entertainment with the introduction of multimedia, reality based entertainment, home theatres, cable 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 seeing motion pictures at home. Additionally, while developments have actually contributed towards the threat of 'piracy' they have also contributed towards ease of saving and distributing films.