As far as the legal and political factors are concerned, the entire film market is affected by the hazard of piracy which might potentially produce an unfavorable impact on the overall income of the movie industry. Having stated that, copyright laws provide security to the movie market in regards to preventing piracy.
While the political and legal environment uses security to film makers, globalization and development of technological aspects have actually increased legal difficulties such as ease of piracy and breaking intellectual property rights.
It must be noted that motion pictures become part of the entertainment industry while expenditure on any form of entertainment is basically an optional expenditure which is more or a high-end rather than a necessity. We look at the comparison of the GDP pattern with the trend in demand for motion pictures, we can see that the two are not straight proportional recommending that any modification in GDP growth does not always bring about a modification in this specific entertainment.
As far as the social-cultural aspects are concerned, it needs to be noted that the 70% of IMAX audiences are between the ages of 19 and 56 which allows a lot of variety when it concerns choosing a specific sector. Furthermore with bulk of the audiences being college or university students with an average household income of $70,000, the purchasing power of the target market reveals possibilities of increasing viewership.
With aspects such as 'parents revealing an interest in their kids's choice of home entertainment' and 'higher purchasing power in families' due to both moms and dads contributing towards the household earnings, we can see that the entertainment organisation has a lot of capacity for market gamers.
While technological factors have actually contributed towards reducing the cost of home entertainment with the intro of multimedia, truth based home entertainment, home theatres, cable television networks, the pressure on theatres has actually increased in term of making the theatre experience richer for consumers in order to make it more appealing than enjoying movies at home. In addition, while innovations have actually contributed towards the threat of 'piracy' they have also contributed towards ease of storing and distributing films.