As far as the political and legal factors are worried, the whole movie market is impacted by the threat of piracy which could possibly cause a negative effect on the total profits of the movie market. Having stated that, copyright laws offer defense to the film industry in regards to preventing piracy.
While the political and legal environment offers security to movie makers, globalization and advancement of technological aspects have actually increased legal challenges such as ease of piracy and breaking intellectual property rights.
It needs to be kept in mind that movies belong to the show business while expenditure on any type of home entertainment is basically an optional expenditure which is more or a high-end rather than a need. We look at the contrast of the GDP trend with the pattern in demand for motion pictures, we can see that the two are not directly proportional recommending that any modification in GDP growth does not necessarily bring about a modification in this particular home entertainment.
As far as the social-cultural aspects are concerned, it needs to be noted that the 70% of IMAX viewers are in between the ages of 19 and 56 which enables a great deal of variety when it pertains to going with a particular sector. Furthermore with bulk of the audiences being college or university students with an average household earnings of $70,000, the buying power of the target market reveals possibilities of increasing viewership.
With elements such as 'parents revealing an interest in their children's choice of home entertainment' and 'higher buying power in families' due to both parents contributing towards the home income, we can see that the entertainment organisation has a great deal of capacity for industry gamers.
While technological elements have contributed towards decreasing the expense of home entertainment with the intro of multimedia, reality based home entertainment, home theatres, cable television networks, the pressure on theatres has actually increased in term of making the theatre experience richer for customers in order to make it more appealing than enjoying films in your home. Additionally, while innovations have contributed towards the threat of 'piracy' they have likewise contributed towards ease of storing and distributing films.