As far as the political and legal aspects are worried, the entire movie market is impacted by the hazard of piracy which could possibly bring about a negative effect on the overall earnings of the film market. Having said that, copyright laws offer protection to the film market in regards to discouraging piracy.
While the legal and political environment offers defense to movie makers, globalization and advancement of technological aspects have increased legal challenges such as ease of piracy and breaking intellectual property rights.
It needs to be noted that movies belong to the entertainment industry while expenditure on any type of entertainment is essentially an optional cost which is more or a luxury rather than a necessity. Nevertheless, we look at the comparison of the GDP pattern with the pattern in demand for movies, we can see that the two are not straight proportional recommending that any modification in GDP growth does not necessarily cause a modification in this specific entertainment.
As far as the social-cultural elements are concerned, it must be kept in mind that the 70% of IMAX viewers are between the ages of 19 and 56 which enables a lot of variety when it concerns choosing a particular section. In addition with majority of the audiences being college or university students with an average household earnings of $70,000, the acquiring power of the target audience shows possibilities of increasing viewership.
With elements such as 'moms and dads showing an interest in their kids's choice of home entertainment' and 'higher purchasing power in households' due to both parents contributing towards the family earnings, we can see that the home entertainment company has a great deal of capacity for industry players.
While technological aspects have contributed towards decreasing the cost of home entertainment with the introduction of multimedia, truth based entertainment, home theatres, cable networks, the pressure on theatres has actually increased in term of making the theatre experience richer for consumers in order to make it more appealing than enjoying movies at home. Furthermore, while developments have actually contributed towards the hazard of 'piracy' they have actually likewise contributed towards ease of storing and distributing movies.