As far as the political and legal elements are worried, the entire movie market is impacted by the risk of piracy which might potentially produce a negative effect on the general income of the film industry. Having stated that, copyright laws provide protection to the film industry in terms of discouraging piracy.
While the legal and political environment provides defense to movie makers, globalization and advancement of technological aspects have actually increased legal obstacles such as ease of piracy and violating copyright rights.
It should be kept in mind that movies become part of the entertainment industry while expense on any form of home entertainment is basically an optional cost which is more or a high-end rather than a necessity. However, we look at the contrast of the GDP pattern with the trend in demand for films, we can see that the two are not straight proportional suggesting that any change in GDP development does not necessarily bring about a modification in this specific entertainment.
As far as the social-cultural aspects are concerned, it should be kept in mind that the 70% of IMAX viewers are in between the ages of 19 and 56 which enables a lot of variety when it comes to opting for a specific sector. In addition with majority of the audiences being college or university students with a typical home earnings of $70,000, the purchasing power of the target audience reveals possibilities of increasing viewership.
With aspects such as 'parents revealing an interest in their children's option of home entertainment' and 'greater purchasing power in families' due to both moms and dads contributing towards the home earnings, we can see that the entertainment company has a lot of potential for market players.
While technological factors have actually contributed towards lowering the expense of entertainment with the intro of multimedia, truth based home entertainment, house theatres, cable networks, the pressure on theatres has actually increased in regard to making the theatre experience richer for consumers in order to make it more attractive than watching films at home. Additionally, while innovations have contributed towards the threat of 'piracy' they have also contributed towards ease of keeping and dispersing movies.