As far as the political and legal elements are worried, the whole movie market is impacted by the risk of piracy which could possibly produce a negative effect on the overall earnings of the film market. Having said that, copyright laws offer security to the film market in terms of preventing piracy.
While the political and legal environment offers defense to film makers, globalization and development of technological aspects have actually increased legal obstacles such as ease of piracy and breaking intellectual property rights.
It must be noted that films are part of the show business while expenditure on any form of home entertainment is generally an optional cost which is more or a luxury instead of a requirement. We look at the contrast of the GDP pattern with the pattern in demand for movies, we can see that the two are not directly proportional suggesting that any modification in GDP development does not necessarily bring about a modification in this particular home entertainment.
As far as the social-cultural aspects 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 variety when it pertains to going with a specific sector. In addition with majority of the viewers being college or university students with an average family earnings of $70,000, the buying power of the target market shows possibilities of increasing viewership.
With factors such as 'parents revealing an interest in their kids's choice of entertainment' and 'greater purchasing power in homes' due to both moms and dads contributing towards the family earnings, we can see that the home entertainment business has a lot of capacity for market players.
While technological aspects have contributed towards reducing the expense of home entertainment with the introduction of multimedia, reality based entertainment, house theatres, cable 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 enjoying movies in your home. In addition, while innovations have contributed towards the risk of 'piracy' they have likewise contributed towards ease of keeping and distributing films.