As far as the legal and political factors are worried, the entire movie industry is impacted by the danger of piracy which might possibly bring about a negative influence on the overall profits of the film market. Having stated that, copyright laws use security to the film industry in terms of preventing piracy.
While the legal and political environment provides security to movie makers, globalization and improvement of technological aspects have actually increased legal obstacles such as ease of piracy and violating copyright rights.
It needs to be noted that motion pictures are part of the show business while expense on any kind of entertainment is generally an optional cost which is more or a high-end rather than a necessity. We look at the contrast of the GDP trend with the pattern in demand for motion pictures, we can see that the two are not straight proportional recommending that any change in GDP growth does not always bring about a modification in this specific home entertainment.
As far as the social-cultural factors are worried, it needs to be noted that the 70% of IMAX audiences are between the ages of 19 and 56 which allows a great deal of diversity when it pertains to opting for a specific sector. Furthermore with bulk of the viewers being college or university students with a typical household earnings of $70,000, the buying power of the target market shows possibilities of increasing viewership.
With aspects such as 'moms and dads showing an interest in their kids's choice of home entertainment' and 'greater buying power in households' due to both moms and dads contributing towards the home earnings, we can see that the entertainment service has a great deal of capacity for industry players.
While technological aspects have actually contributed towards reducing the expense of entertainment with the intro of multimedia, truth based home entertainment, home theatres, cable networks, the pressure on theatres has increased in term of making the theatre experience richer for consumers in order to make it more appealing than viewing films at home. Additionally, while innovations have contributed towards the risk of 'piracy' they have also contributed towards ease of storing and distributing films.