As far as the legal and political elements are worried, the entire film industry is affected by the danger of piracy which could potentially cause an unfavorable effect on the total earnings of the movie industry. Having stated that, copyright laws provide defense to the movie industry in regards to discouraging piracy.
While the legal and political environment provides defense to movie makers, globalization and improvement of technological elements have increased legal challenges such as ease of piracy and breaking intellectual property rights.
It should be kept in mind that motion pictures become part of the show business while expenditure on any form of home entertainment is generally an optional expenditure which is more or a luxury instead of a need. We look at the comparison of the GDP trend with the pattern in demand for movies, we can see that the two are not directly proportional recommending that any change in GDP development does not necessarily bring about a change in this specific entertainment.
As far as the social-cultural factors are worried, it should be kept in mind that the 70% of IMAX viewers are between the ages of 19 and 56 which allows a great deal of variety when it comes to going with a specific sector. In addition with bulk of the audiences being college or university students with an average family income of $70,000, the buying power of the target audience reveals possibilities of increasing viewership.
With factors such as 'parents showing an interest in their children's choice of entertainment' and 'greater purchasing power in families' due to both parents contributing towards the family income, we can see that the home entertainment service has a lot of potential for market gamers.
While technological aspects have actually contributed towards lowering the expense of entertainment with the intro of multimedia, truth based entertainment, home theatres, cable television networks, the pressure on theatres has increased in term of making the theatre experience richer for customers in order to make it more appealing than viewing movies in your home. Additionally, while innovations have contributed towards the risk of 'piracy' they have actually likewise contributed towards ease of keeping and dispersing movies.