As far as the legal and political factors are concerned, the whole film market is impacted by the threat of piracy which might potentially produce an unfavorable effect on the general income of the film market. Having stated that, copyright laws use protection to the film industry in terms of dissuading piracy.
While the political and legal environment uses security to film makers, globalization and development of technological elements have increased legal difficulties such as ease of piracy and violating copyright rights.
It needs to be noted that motion pictures are part of the show business while expense on any form of entertainment is generally an optional expense which is more or a luxury rather than a requirement. Nevertheless, we look at the contrast of the GDP pattern with the trend in demand for movies, we can see that the two are not straight proportional suggesting that any change in GDP development does not always produce a change in this specific entertainment.
As far as the social-cultural factors are worried, it must be kept in mind that the 70% of IMAX audiences are in between the ages of 19 and 56 which allows a lot of diversity when it concerns selecting a particular sector. In addition with bulk of the viewers being college or university students with an average household income of $70,000, the acquiring power of the target market reveals possibilities of increasing viewership.
With factors such as 'parents showing an interest in their children's option of entertainment' and 'higher purchasing power in homes' due to both moms and dads contributing towards the household income, we can see that the home entertainment business has a great deal of potential for industry players.
While technological elements have actually contributed towards decreasing the expense of entertainment with the intro of multimedia, truth based entertainment, home theatres, cable networks, the pressure on theatres has actually increased in term of making the theatre experience richer for customers in order to make it more attractive than enjoying movies in your home. In addition, while developments have actually contributed towards the threat of 'piracy' they have actually likewise contributed towards ease of keeping and distributing movies.