As far as the legal and political elements are concerned, the entire movie market is impacted by the danger of piracy which could potentially cause an unfavorable influence on the total revenue of the movie industry. Having stated that, copyright laws provide protection to the movie market in terms of discouraging piracy.
While the political and legal environment uses security to film makers, globalization and improvement of technological elements have increased legal difficulties such as ease of piracy and violating intellectual property rights.
It should be noted that movies become part of the show business while expenditure on any kind of home entertainment is basically an optional cost which is more or a high-end rather than a requirement. We look at the contrast of the GDP pattern with the trend in need for motion pictures, we can see that the two are not directly proportional suggesting that any modification in GDP growth does not necessarily bring about a change in this specific home entertainment.
As far as the social-cultural aspects are concerned, it ought to be kept in mind that the 70% of IMAX viewers are between the ages of 19 and 56 which enables a lot of diversity when it comes to selecting a particular sector. Furthermore with bulk of the viewers being college or university students with a typical home income of $70,000, the acquiring power of the target audience reveals possibilities of increasing viewership.
With elements such as 'parents showing an interest in their children's choice of entertainment' and 'greater buying power in homes' due to both moms and dads contributing towards the family income, we can see that the entertainment service has a lot of capacity for industry gamers.
While technological factors have actually contributed towards decreasing the cost of home entertainment with the introduction of multimedia, reality based 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 viewing films at home. In addition, while innovations have actually contributed towards the threat of 'piracy' they have also contributed towards ease of storing and dispersing movies.