As far as the legal and political factors are concerned, the entire movie market is impacted by the threat of piracy which could potentially cause an unfavorable impact on the total earnings of the film market. Having stated that, copyright laws use security to the movie market in regards to dissuading piracy.
While the political and legal environment offers security to film makers, globalization and improvement of technological elements have increased legal obstacles such as ease of piracy and breaching copyright rights.
It ought to be kept in mind that movies become part of the show business while expenditure on any form of entertainment is generally an optional cost which is more or a high-end instead of a necessity. Nevertheless, 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 development does not always produce a modification in this specific home entertainment.
As far as the social-cultural factors are concerned, it should be noted that the 70% of IMAX audiences are between the ages of 19 and 56 which allows a lot of variety when it comes to choosing a specific segment. Additionally with bulk of the viewers being college or university students with an average household earnings of $70,000, the acquiring power of the target audience reveals possibilities of increasing viewership.
With factors such as 'parents revealing an interest in their children's option of entertainment' and 'greater purchasing power in homes' due to both moms and dads contributing towards the household income, we can see that the home entertainment business has a great deal of capacity for market gamers.
While technological aspects have actually contributed towards reducing the cost of home entertainment with the introduction 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 customers in order to make it more attractive than watching movies in the house. Additionally, while innovations have contributed towards the danger of 'piracy' they have likewise contributed towards ease of storing and distributing movies.