As far as the legal and political elements are concerned, the whole movie industry is impacted by the threat of piracy which might potentially produce an unfavorable effect on the general revenue of the movie industry. Having stated that, copyright laws offer protection to the movie industry in terms of dissuading piracy.
While the legal and political environment uses protection to movie makers, globalization and development of technological aspects have increased legal obstacles such as ease of piracy and breaching copyright rights.
It must be noted that motion pictures belong to the show business while expense on any type of entertainment is basically an optional expense which is more or a luxury rather than a necessity. We look at the comparison of the GDP trend with the pattern in demand for films, we can see that the two are not straight proportional suggesting that any change in GDP growth does not necessarily bring about a modification in this specific home entertainment.
As far as the social-cultural elements are concerned, it needs to be noted that the 70% of IMAX viewers are between the ages of 19 and 56 which enables a great deal of variety when it comes to selecting a particular section. Additionally with bulk of the viewers being college or university students with a typical household income of $70,000, the acquiring power of the target market reveals possibilities of increasing viewership.
With aspects such as 'parents revealing an interest in their children's choice of home entertainment' and 'higher purchasing power in households' due to both moms and dads contributing towards the home income, we can see that the entertainment business has a great deal of capacity for industry players.
While technological elements have actually contributed towards reducing the expense of entertainment with the introduction of multimedia, reality based entertainment, house theatres, cable networks, the pressure on theatres has actually increased in term of making the theatre experience richer for consumers in order to make it more attractive than enjoying films at home. In addition, while innovations have contributed towards the hazard of 'piracy' they have actually also contributed towards ease of saving and dispersing movies.