As far as the political and legal factors are concerned, the whole movie industry is impacted by the danger of piracy which might potentially cause a negative impact on the general revenue of the movie industry. Having stated that, copyright laws use defense to the film market in terms of discouraging piracy.
While the legal and political environment uses security to movie makers, globalization and development of technological aspects have increased legal difficulties such as ease of piracy and breaching intellectual property rights.
It needs to be kept in mind that movies become part of the show business while expenditure on any type of home entertainment is essentially an optional expense which is more or a high-end rather than a need. We look at the comparison of the GDP trend with the pattern in demand for films, we can see that the 2 are not directly proportional recommending that any change in GDP growth does not always bring about a modification in this specific entertainment.
As far as the social-cultural elements are worried, it needs to be kept in mind that the 70% of IMAX audiences are in between the ages of 19 and 56 which permits a great deal of diversity when it comes to selecting a specific sector. In addition with bulk of the audiences being college or university students with an average family earnings of $70,000, the acquiring power of the target market reveals possibilities of increasing viewership.
With factors such as 'moms and dads revealing an interest in their kids's choice of home entertainment' and 'greater purchasing power in families' due to both parents contributing towards the family earnings, we can see that the entertainment organisation has a great deal of capacity for market players.
While technological factors have contributed towards reducing the cost of home entertainment with the intro of multimedia, reality based home entertainment, home theatres, cable television networks, the pressure on theatres has increased in term of making the theatre experience richer for consumers in order to make it more appealing than watching films in the house. Additionally, while developments have contributed towards the threat of 'piracy' they have likewise contributed towards ease of saving and distributing movies.