As far as the legal and political aspects are worried, the entire film industry is affected by the threat of piracy which might potentially produce a negative impact on the general income of the movie market. Having said that, copyright laws provide defense to the film market in regards to discouraging piracy.
While the political and legal environment uses security to movie makers, globalization and advancement of technological aspects have increased legal challenges such as ease of piracy and breaking copyright rights.
It should be kept in mind that motion pictures are part of the entertainment industry while expenditure on any kind of home entertainment is basically an optional cost which is more or a high-end rather than a necessity. We look at the comparison of the GDP pattern with the pattern in demand for movies, we can see that the 2 are not straight proportional suggesting that any modification in GDP development does not always bring about a change in this specific entertainment.
As far as the social-cultural aspects 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 diversity when it pertains to choosing a specific sector. In addition with bulk of the viewers being college or university students with a typical household income of $70,000, the purchasing power of the target market shows possibilities of increasing viewership.
With factors such as 'parents showing an interest in their kids's choice of home entertainment' and 'higher buying power in homes' due to both moms and dads contributing towards the family earnings, we can see that the home entertainment service has a lot of potential for industry players.
While technological elements have actually contributed towards decreasing the cost of entertainment with the introduction of multimedia, truth based entertainment, house theatres, cable networks, the pressure on theatres has actually increased in regard to making the theatre experience richer for consumers in order to make it more appealing than enjoying films in the house. In addition, while developments have contributed towards the threat of 'piracy' they have actually also contributed towards ease of storing and distributing films.