As far as the political and legal aspects are concerned, the entire movie industry is impacted by the danger of piracy which could possibly produce a negative impact on the overall income of the film industry. Having stated that, copyright laws provide security to the movie market in terms of dissuading piracy.
While the political and legal environment uses defense to movie makers, globalization and improvement of technological factors have increased legal difficulties such as ease of piracy and violating intellectual property rights.
It needs to be noted that movies become part of the entertainment industry while expense on any type of home entertainment is essentially an optional expense which is more or a luxury rather than a necessity. Nevertheless, we look at the contrast of the GDP trend with the pattern in demand for movies, we can see that the two are not directly proportional recommending that any change in GDP growth does not necessarily bring about a change in this particular home entertainment.
As far as the social-cultural elements are worried, 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 variety when it comes to going with a particular section. Additionally with bulk of the viewers being college or university students with an average family earnings of $70,000, the buying power of the target market reveals possibilities of increasing viewership.
With elements such as 'parents showing an interest in their children's option of home entertainment' and 'higher purchasing power in homes' due to both parents contributing towards the household earnings, we can see that the entertainment organisation has a lot of capacity for industry players.
While technological factors have actually contributed towards decreasing the expense of home entertainment with the introduction 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 customers in order to make it more attractive than seeing films in your home. Additionally, while innovations have contributed towards the risk of 'piracy' they have actually likewise contributed towards ease of keeping and distributing films.