As far as the legal and political factors are worried, the whole movie market is impacted by the risk of piracy which could possibly bring about an unfavorable effect on the general revenue of the movie market. Having stated that, copyright laws use defense to the film market in terms of preventing piracy.
While the political and legal environment offers protection to movie makers, globalization and advancement of technological elements have increased legal difficulties such as ease of piracy and breaching intellectual property rights.
It needs to be kept in mind that films are part of the show business while expense on any form of entertainment is generally an optional expenditure which is more or a luxury instead of a requirement. Nevertheless, we look at the comparison of the GDP trend with the pattern in demand for films, we can see that the two are not straight proportional recommending that any change in GDP development does not always cause a change in this specific entertainment.
As far as the social-cultural elements are concerned, it must be kept in mind that the 70% of IMAX viewers are between the ages of 19 and 56 which enables a great deal of diversity when it comes to going with a particular section. Furthermore with bulk of the audiences being college or university students with a typical home earnings of $70,000, the purchasing power of the target audience reveals possibilities of increasing viewership.
With factors such as 'moms and dads revealing an interest in their kids's option of home entertainment' and 'greater buying power in households' due to both parents contributing towards the family income, we can see that the entertainment organisation has a great deal of potential for market players.
While technological aspects have contributed towards decreasing the expense of home entertainment with the introduction of multimedia, reality based home entertainment, house theatres, cable networks, the pressure on theatres has actually increased in term of making the theatre experience richer for consumers in order to make it more attractive than enjoying movies at home. Additionally, while developments have contributed towards the hazard of 'piracy' they have actually likewise contributed towards ease of keeping and distributing movies.