As far as the political and legal elements are worried, the entire film industry is affected by the threat of piracy which might potentially bring about an unfavorable influence on the total profits of the movie market. Having said that, copyright laws offer defense to the movie industry in regards to preventing piracy.
While the political and legal environment offers defense to movie makers, globalization and improvement of technological aspects have actually increased legal obstacles such as ease of piracy and violating copyright rights.
It must be kept in mind that films become part of the show business while expense on any kind of home entertainment is generally an optional cost which is more or a luxury instead of a requirement. However, we take a look at the comparison of the GDP trend with the pattern in demand for movies, we can see that the two are not straight proportional suggesting that any modification in GDP development does not necessarily 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 great deal of diversity when it concerns choosing a particular section. Additionally with majority of the viewers being college or university students with an average household income of $70,000, the buying power of the target market reveals possibilities of increasing viewership.
With factors such as 'moms and dads revealing an interest in their kids's choice of home entertainment' and 'higher buying power in families' due to both moms and dads contributing towards the family income, we can see that the entertainment organisation has a great deal of potential for industry players.
While technological elements have contributed towards decreasing the expense of home entertainment with the introduction of multimedia, truth based home entertainment, home theatres, cable networks, the pressure on theatres has increased in term of making the theatre experience richer for customers in order to make it more appealing than viewing movies at home. Additionally, while developments have actually contributed towards the risk of 'piracy' they have actually also contributed towards ease of storing and distributing films.