As far as the political and legal elements are concerned, the whole movie industry is affected by the risk of piracy which might potentially produce a negative impact on the overall earnings of the movie industry. Having said that, copyright laws use protection to the film industry in terms of discouraging piracy.
While the political and legal environment offers security to movie makers, globalization and improvement of technological elements have actually increased legal challenges such as ease of piracy and violating copyright rights.
It must be noted that motion pictures become part of the entertainment industry while expense on any type of entertainment is basically an optional expenditure which is more or a luxury rather than a need. We look at the contrast of the GDP pattern with the pattern in demand for motion pictures, we can see that the two are not straight proportional suggesting that any change in GDP growth does not always bring about a change in this specific home entertainment.
As far as the social-cultural aspects are worried, it needs to be noted that the 70% of IMAX audiences are between the ages of 19 and 56 which permits a lot of variety when it comes to selecting a particular segment. Furthermore with bulk of the audiences being college or university students with an average home earnings of $70,000, the acquiring power of the target market reveals possibilities of increasing viewership.
With aspects such as 'parents revealing an interest in their children's choice of entertainment' and 'greater purchasing power in families' due to both moms and dads contributing towards the family earnings, we can see that the entertainment service has a lot of potential for industry players.
While technological aspects have contributed towards reducing the cost of entertainment with the intro of multimedia, reality based home entertainment, house theatres, cable television networks, the pressure on theatres has actually increased in regard to making the theatre experience richer for customers in order to make it more appealing than seeing movies at home. Furthermore, while innovations have contributed towards the risk of 'piracy' they have likewise contributed towards ease of keeping and dispersing movies.