As far as the political and legal factors are worried, the entire film industry is affected by the threat of piracy which might potentially bring about a negative impact on the total income of the film market. Having stated that, copyright laws use security to the film market in terms of preventing piracy.
While the legal and political environment offers defense to film makers, globalization and advancement of technological factors have increased legal obstacles such as ease of piracy and breaching intellectual property rights.
It must be noted that films become part of the show business while expense on any form of home entertainment is essentially an optional cost which is more or a high-end rather than a need. However, we look at the comparison of the GDP pattern with the pattern in demand for movies, we can see that the two are not directly proportional suggesting that any change in GDP growth does not always produce a modification in this specific entertainment.
As far as the social-cultural elements are worried, it should be noted that the 70% of IMAX viewers are in between the ages of 19 and 56 which allows a lot of variety when it comes to selecting a specific sector. Furthermore with bulk of the viewers being college or university students with a typical household income of $70,000, the buying power of the target audience reveals possibilities of increasing viewership.
With factors such as 'parents showing an interest in their children's option of entertainment' and 'greater purchasing power in families' due to both moms and dads contributing towards the family income, we can see that the home entertainment company has a lot of potential for industry gamers.
While technological factors have actually contributed towards reducing the cost of entertainment with the introduction of multimedia, truth based entertainment, home theatres, cable networks, the pressure on theatres has actually increased in regard to making the theatre experience richer for customers in order to make it more attractive than enjoying movies in your home. Furthermore, while developments have actually contributed towards the hazard of 'piracy' they have also contributed towards ease of storing and dispersing movies.