As far as the legal and political aspects are concerned, the entire movie market is affected by the risk of piracy which might possibly cause a negative effect on the overall revenue of the movie market. Having stated that, copyright laws offer security to the film industry in regards to dissuading piracy.
While the political and legal environment uses protection to movie makers, globalization and advancement of technological factors have increased legal difficulties such as ease of piracy and violating intellectual property rights.
It must be noted that movies are part of the show business while expenditure on any type of entertainment is essentially an optional expenditure which is more or a luxury instead of 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 directly proportional suggesting that any modification in GDP development does not necessarily bring about a modification in this particular home entertainment.
As far as the social-cultural factors are worried, it ought to be noted that the 70% of IMAX audiences are between the ages of 19 and 56 which permits a great deal of variety when it concerns selecting a particular segment. Furthermore with majority of the audiences being college or university students with an average home income of $70,000, the acquiring power of the target market shows possibilities of increasing viewership.
With factors such as 'moms and dads revealing an interest in their kids's option of home entertainment' and 'higher purchasing power in homes' due to both moms and dads contributing towards the home earnings, we can see that the home entertainment organisation has a lot of potential for market gamers.
While technological factors have contributed towards lowering the cost of entertainment with the intro of multimedia, reality based home entertainment, house theatres, cable television networks, the pressure on theatres has increased in regard to making the theatre experience richer for customers in order to make it more appealing than viewing movies at home. In addition, while developments have actually contributed towards the danger of 'piracy' they have actually also contributed towards ease of storing and dispersing films.