As far as the legal and political aspects are concerned, the whole film industry is impacted by the threat of piracy which could possibly bring about a negative effect on the total profits of the film industry. Having stated that, copyright laws provide protection to the film market in terms of discouraging piracy.
While the legal and political environment provides protection to film makers, globalization and advancement of technological elements have actually increased legal difficulties such as ease of piracy and breaking copyright rights.
It ought to be kept in mind that motion pictures are part of the entertainment industry while expenditure on any type of home entertainment is basically an optional cost which is more or a high-end instead of a need. However, we look at the contrast of the GDP trend with the trend in demand for motion pictures, we can see that the two are not straight proportional recommending that any modification in GDP growth does not always cause a change in this particular home entertainment.
As far as the social-cultural aspects are worried, it should be noted that the 70% of IMAX audiences are in between the ages of 19 and 56 which enables a lot of diversity when it concerns opting for a specific sector. Additionally with majority of the audiences being college or university students with an average household earnings of $70,000, the buying power of the target audience shows possibilities of increasing viewership.
With factors such as 'moms and dads showing an interest in their kids's option of home entertainment' and 'higher purchasing power in families' due to both parents contributing towards the household income, we can see that the entertainment business has a great deal of potential for industry players.
While technological elements have contributed towards reducing the cost of home entertainment with the introduction of multimedia, truth based entertainment, home theatres, cable networks, the pressure on theatres has increased in regard to making the theatre experience richer for customers in order to make it more attractive than watching movies in your home. Furthermore, while innovations have contributed towards the threat of 'piracy' they have also contributed towards ease of storing and dispersing films.