As far as the legal and political factors are worried, the entire film industry is affected by the risk of piracy which could possibly bring about a negative impact on the general income of the movie market. Having stated that, copyright laws provide defense to the film industry in regards to discouraging piracy.
While the legal and political environment uses security to film makers, globalization and development of technological elements have increased legal obstacles such as ease of piracy and breaching intellectual property rights.
It needs to be noted that films become part of the show business while expenditure on any kind of home entertainment is generally an optional expense which is more or a high-end instead of a requirement. Nevertheless, we take a 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 recommending that any change in GDP growth does not always cause a modification in this particular home entertainment.
As far as the social-cultural elements are worried, it needs to be noted that the 70% of IMAX viewers are in between the ages of 19 and 56 which allows a lot of diversity when it comes to going with a particular section. Furthermore with bulk of the audiences being college or university students with a typical home earnings of $70,000, the buying power of the target market shows possibilities of increasing viewership.
With factors such as 'moms and dads revealing an interest in their kids's option of entertainment' and 'greater buying power in households' due to both parents contributing towards the family income, we can see that the home entertainment service has a great deal of potential for industry gamers.
While technological factors have contributed towards reducing the expense of home entertainment with the introduction of multimedia, reality based home entertainment, home theatres, cable television networks, the pressure on theatres has increased in term of making the theatre experience richer for consumers in order to make it more appealing than seeing movies in the house. Additionally, while innovations have contributed towards the danger of 'piracy' they have also contributed towards ease of storing and distributing movies.