As far as the political and legal factors are concerned, the entire film industry is affected by the danger of piracy which could potentially cause a negative effect on the general income of the film industry. Having said that, copyright laws provide protection to the film market in terms of discouraging piracy.
While the political and legal environment offers protection to movie makers, globalization and improvement of technological factors have actually increased legal challenges such as ease of piracy and breaking intellectual property rights.
It must be noted that movies become part of the entertainment industry while expense on any kind of entertainment is essentially an optional expenditure which is more or a high-end instead of a necessity. However, we look at the comparison 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 necessarily bring about a modification in this specific home entertainment.
As far as the social-cultural aspects are worried, it ought to be kept in mind that the 70% of IMAX viewers are between the ages of 19 and 56 which allows a lot of diversity when it comes to choosing a specific segment. In addition with bulk of the audiences being college or university students with an average household earnings of $70,000, the purchasing power of the target market shows possibilities of increasing viewership.
With aspects such as 'moms and dads showing an interest in their kids's option of home entertainment' and 'higher buying power in homes' due to both moms and dads contributing towards the family earnings, we can see that the entertainment company has a great deal of capacity for market players.
While technological factors have actually contributed towards lowering the cost of entertainment with the introduction of multimedia, truth based entertainment, house theatres, cable television networks, the pressure on theatres has actually increased in regard to making the theatre experience richer for consumers in order to make it more appealing than watching motion pictures at home. In addition, while innovations have actually contributed towards the threat of 'piracy' they have actually also contributed towards ease of saving and dispersing movies.