As far as the legal and political factors are worried, the entire movie industry is affected by the danger of piracy which could potentially produce a negative effect on the overall income of the film market. Having stated that, copyright laws offer protection to the movie market in regards to discouraging piracy.
While the legal and political environment provides security to movie makers, globalization and development of technological factors have actually increased legal challenges such as ease of piracy and breaking copyright rights.
It must be noted that movies become part of the entertainment industry while expense on any form of home entertainment is basically an optional expenditure which is more or a high-end instead of a need. Nevertheless, we look at the comparison of the GDP trend with the trend in demand for movies, we can see that the two are not directly proportional suggesting that any change in GDP development does not always cause a modification in this particular entertainment.
As far as the social-cultural aspects are worried, it should be noted that the 70% of IMAX viewers are in between the ages of 19 and 56 which enables a lot of diversity when it concerns selecting a particular segment. In addition with bulk of the audiences being college or university students with an average home income of $70,000, the buying power of the target audience shows possibilities of increasing viewership.
With elements such as 'moms and dads showing an interest in their children's option of entertainment' and 'greater purchasing power in households' due to both moms and dads contributing towards the family income, we can see that the home entertainment business has a lot of potential for industry players.
While technological factors have contributed towards decreasing the expense of home entertainment with the intro of multimedia, reality based entertainment, home theatres, cable television 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 seeing movies in the house. Furthermore, while innovations have contributed towards the hazard of 'piracy' they have likewise contributed towards ease of keeping and distributing films.