As far as the legal and political aspects are worried, the entire film industry is impacted by the hazard of piracy which might potentially produce a negative influence on the overall revenue of the movie industry. Having said that, copyright laws use defense to the film industry in regards to discouraging piracy.
While the legal and political environment provides defense to film makers, globalization and improvement of technological factors have actually increased legal challenges such as ease of piracy and breaching intellectual property rights.
It needs to be kept in mind that motion pictures belong to the entertainment industry while expenditure on any form of home entertainment is generally an optional expenditure which is more or a luxury instead of a requirement. However, we look at the comparison of the GDP trend with the pattern in demand for motion pictures, we can see that the two are not directly proportional suggesting that any modification in GDP growth does not necessarily bring about a change in this specific entertainment.
As far as the social-cultural factors are concerned, it needs to be noted that the 70% of IMAX viewers are between the ages of 19 and 56 which enables a lot of diversity when it pertains to opting for a particular section. In addition with bulk of the viewers being college or university students with an average home income of $70,000, the acquiring power of the target audience shows possibilities of increasing viewership.
With aspects such as 'parents showing an interest in their kids's choice of home entertainment' and 'higher buying power in households' due to both parents contributing towards the household earnings, we can see that the home entertainment service has a great deal of capacity for industry players.
While technological elements have actually contributed towards reducing the expense of home entertainment with the introduction of multimedia, truth based home entertainment, house theatres, cable television 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 in the house. Furthermore, while innovations have contributed towards the threat of 'piracy' they have also contributed towards ease of storing and dispersing movies.