As far as the legal and political factors are worried, the entire movie industry is impacted by the hazard of piracy which could potentially bring about a negative effect on the total earnings of the movie industry. Having stated that, copyright laws offer security to the movie market in regards to preventing piracy.
While the legal and political environment offers protection to film makers, globalization and improvement of technological elements have increased legal difficulties such as ease of piracy and breaking intellectual property rights.
It should be noted that movies belong to the show business while expense on any kind of entertainment is essentially an optional cost which is more or a luxury rather than a necessity. We look at the contrast of the GDP trend with the pattern in need for movies, we can see that the two are not directly proportional recommending that any change in GDP development does not necessarily bring about a modification in this particular entertainment.
As far as the social-cultural elements are concerned, it needs to be kept in mind that the 70% of IMAX viewers are between the ages of 19 and 56 which permits a lot of diversity when it pertains to going with a specific section. In addition with majority of the audiences being college or university students with a typical household earnings of $70,000, the purchasing power of the target audience reveals possibilities of increasing viewership.
With aspects such as 'parents revealing an interest in their children's choice of home entertainment' and 'greater buying power in households' due to both parents contributing towards the home earnings, we can see that the home entertainment company has a lot of capacity for market gamers.
While technological aspects have contributed towards decreasing the cost of entertainment with the intro of multimedia, truth based entertainment, house theatres, cable 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 viewing motion pictures at home. Furthermore, while developments have contributed towards the hazard of 'piracy' they have also contributed towards ease of saving and dispersing movies.