As far as the legal and political aspects are worried, the whole movie industry is affected by the danger of piracy which might possibly produce a negative effect on the overall revenue of the movie industry. Having said that, copyright laws provide protection to the film market in terms of dissuading piracy.
While the political and legal environment provides defense to movie makers, globalization and advancement of technological aspects have increased legal obstacles such as ease of piracy and violating intellectual property rights.
It should be kept in mind that motion pictures are part of the entertainment industry while expenditure on any form of entertainment is essentially an optional expense which is more or a luxury instead of a requirement. Nevertheless, we take a 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 suggesting that any change in GDP development does not always produce a modification in this particular entertainment.
As far as the social-cultural factors are concerned, it needs to be kept in mind that the 70% of IMAX audiences are in between the ages of 19 and 56 which allows a great deal of diversity when it concerns opting for a particular sector. Furthermore with majority of the viewers being college or university students with an average family income of $70,000, the purchasing power of the target market shows possibilities of increasing viewership.
With aspects such as 'moms and dads showing an interest in their children's option of home entertainment' and 'higher buying power in households' due to both parents contributing towards the family income, we can see that the entertainment business has a great deal of capacity for industry gamers.
While technological aspects have contributed towards decreasing the cost of entertainment with the intro of multimedia, reality based home entertainment, house 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 attractive than seeing motion pictures in your home. Additionally, while developments have actually contributed towards the threat of 'piracy' they have likewise contributed towards ease of keeping and dispersing films.