As far as the political and legal elements are worried, the whole movie market is affected by the risk of piracy which could possibly bring about an unfavorable impact on the overall profits of the film industry. Having said that, copyright laws provide defense to the film market in terms of discouraging piracy.
While the political and legal environment provides security to movie makers, globalization and advancement of technological aspects have increased legal obstacles such as ease of piracy and breaking intellectual property rights.
It needs to be kept in mind that motion pictures belong to the entertainment industry while expense on any kind of entertainment is essentially an optional cost which is more or a high-end instead of a need. Nevertheless, we take a look at the comparison of the GDP pattern with the trend in demand for movies, we can see that the two are not directly proportional suggesting that any change in GDP growth does not always produce a modification in this specific home entertainment.
As far as the social-cultural factors are worried, it should be kept in mind that the 70% of IMAX audiences are in between the ages of 19 and 56 which enables a great deal of variety when it concerns opting for a particular section. Additionally with bulk of the audiences being college or university students with a typical household income of $70,000, the acquiring power of the target market shows possibilities of increasing viewership.
With elements such as 'moms and dads showing an interest in their kids's option of home entertainment' and 'higher buying power in families' due to both moms and dads contributing towards the home earnings, we can see that the home entertainment service has a great deal of potential for market players.
While technological aspects have actually contributed towards lowering the expense of home entertainment with the introduction of multimedia, reality based home entertainment, home theatres, cable television 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 viewing films in the house. Furthermore, while developments have contributed towards the danger of 'piracy' they have actually also contributed towards ease of storing and distributing films.