As far as the legal and political elements are concerned, the whole film industry is impacted by the threat of piracy which might potentially produce an unfavorable impact on the general revenue of the film industry. Having stated that, copyright laws provide protection to the movie industry in terms of preventing piracy.
While the political and legal environment uses security to movie makers, globalization and advancement of technological elements have increased legal difficulties such as ease of piracy and violating copyright rights.
It ought to be kept in mind that movies become part of the entertainment industry while expenditure on any form of entertainment is essentially an optional cost which is more or a high-end rather than a need. Nevertheless, we look at the contrast of the GDP trend with the trend in demand for motion pictures, we can see that the two are not directly proportional recommending that any change in GDP growth does not always cause a modification in this specific home entertainment.
As far as the social-cultural aspects are concerned, it ought to be noted that the 70% of IMAX viewers are in between the ages of 19 and 56 which enables a great deal of diversity when it comes to opting for a particular sector. In addition with majority of the viewers being college or university students with an average home earnings of $70,000, the buying power of the target audience reveals possibilities of increasing viewership.
With aspects such as 'parents showing an interest in their kids's option of home entertainment' and 'higher purchasing power in households' due to both moms and dads contributing towards the home income, we can see that the entertainment service has a great deal of potential for market players.
While technological elements have contributed towards decreasing the cost of entertainment with the introduction of multimedia, reality based entertainment, house theatres, cable television networks, the pressure on theatres has increased in regard to making the theatre experience richer for customers in order to make it more appealing than watching movies in the house. Furthermore, while innovations have actually contributed towards the hazard of 'piracy' they have actually also contributed towards ease of storing and dispersing films.