As far as the political and legal elements are concerned, the entire movie market is affected by the threat of piracy which might potentially bring about an unfavorable impact on the total profits of the movie industry. Having said that, copyright laws offer defense to the film market in regards to dissuading piracy.
While the legal and political environment provides defense to movie makers, globalization and improvement of technological factors have increased legal difficulties such as ease of piracy and breaching intellectual property rights.
It must be kept in mind that motion pictures become part of the show business while expenditure on any kind of home entertainment is basically an optional cost which is more or a high-end instead of a requirement. Nevertheless, we look at the comparison of the GDP trend with the pattern in demand for motion pictures, we can see that the two are not directly proportional suggesting that any change in GDP development does not necessarily cause a change in this particular home entertainment.
As far as the social-cultural elements are concerned, it needs to be kept in mind that the 70% of IMAX viewers are between the ages of 19 and 56 which allows a great deal of variety when it comes to going with a specific segment. Furthermore with bulk of the audiences being college or university students with a typical household income of $70,000, the purchasing power of the target audience reveals possibilities of increasing viewership.
With factors such as 'moms and dads showing an interest in their kids's choice of home entertainment' and 'higher purchasing power in families' due to both moms and dads contributing towards the household income, we can see that the home entertainment service has a lot of potential for industry gamers.
While technological aspects have actually contributed towards lowering the cost of entertainment with the intro 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 attractive than watching motion pictures at home. Additionally, while innovations have contributed towards the hazard of 'piracy' they have actually likewise contributed towards ease of saving and distributing films.