As far as the political and legal aspects are concerned, the whole movie market is affected by the danger of piracy which could potentially produce an unfavorable influence on the total profits of the movie market. Having said that, copyright laws provide security to the movie market in regards to preventing piracy.
While the legal and political environment uses protection to movie makers, globalization and improvement of technological factors have increased legal challenges such as ease of piracy and breaching intellectual property rights.
It should be noted that films become part of the entertainment industry while expense on any kind of entertainment is generally an optional cost which is more or a luxury rather than a requirement. However, we look at the contrast of the GDP trend with the trend in demand for films, we can see that the two are not directly proportional recommending that any change in GDP development does not necessarily produce a change in this specific entertainment.
As far as the social-cultural aspects are concerned, it must be noted that the 70% of IMAX viewers are between the ages of 19 and 56 which enables a lot of variety when it comes to choosing a particular segment. Furthermore with majority of the audiences being college or university students with a typical home earnings of $70,000, the acquiring power of the target market reveals possibilities of increasing viewership.
With elements such as 'moms and dads revealing an interest in their children's option of home entertainment' and 'higher purchasing power in homes' due to both parents contributing towards the family earnings, we can see that the home entertainment business has a lot of capacity for market players.
While technological elements have actually contributed towards reducing the expense of home entertainment with the introduction of multimedia, truth based home entertainment, home theatres, cable networks, the pressure on theatres has actually increased in regard to making the theatre experience richer for customers in order to make it more attractive than enjoying films at home. Additionally, while developments have actually contributed towards the risk of 'piracy' they have also contributed towards ease of storing and dispersing movies.