As far as the political and legal aspects are concerned, the whole movie market is affected by the danger of piracy which might possibly cause a negative influence on the general profits of the film market. Having stated that, copyright laws use protection to the film industry in terms of dissuading piracy.
While the legal and political environment provides defense to movie makers, globalization and improvement of technological factors have actually increased legal difficulties such as ease of piracy and breaking copyright rights.
It should be kept in mind that motion pictures are part of the show business while expense on any form of home entertainment is essentially an optional expense which is more or a luxury rather than a need. However, we take a look at the comparison of the GDP trend with the pattern in demand for motion pictures, we can see that the two are not straight proportional suggesting that any change in GDP growth does not necessarily produce a change in this specific home entertainment.
As far as the social-cultural elements are worried, it must be noted that the 70% of IMAX viewers are in between the ages of 19 and 56 which enables a great deal of variety when it comes to choosing a particular segment. Furthermore with majority of the viewers being college or university students with a typical household earnings of $70,000, the buying power of the target market reveals possibilities of increasing viewership.
With factors such as 'parents showing an interest in their children's option of home entertainment' and 'greater purchasing power in families' due to both parents contributing towards the home income, we can see that the home entertainment business has a lot of potential for industry gamers.
While technological factors have actually contributed towards lowering the cost of entertainment with the introduction of multimedia, reality based home entertainment, house theatres, cable television networks, the pressure on theatres has increased in regard to making the theatre experience richer for consumers in order to make it more attractive than enjoying motion pictures in the house. Additionally, while developments have actually contributed towards the hazard of 'piracy' they have also contributed towards ease of keeping and distributing movies.