As far as the legal and political elements are worried, the whole movie market is affected by the threat of piracy which might potentially produce an unfavorable impact on the general revenue of the film market. Having said that, copyright laws offer defense to the movie industry in regards to dissuading piracy.
While the political and legal environment uses protection to movie makers, globalization and advancement of technological factors have increased legal obstacles such as ease of piracy and breaking intellectual property rights.
It should be noted that motion pictures are part of the entertainment industry while expenditure on any form of entertainment is generally an optional expenditure which is more or a high-end instead of a need. We look at the comparison of the GDP trend with the pattern in need for motion pictures, we can see that the 2 are not straight proportional suggesting that any change in GDP development does not necessarily bring about a modification in this specific entertainment.
As far as the social-cultural elements are concerned, it must be kept in mind that the 70% of IMAX viewers are between the ages of 19 and 56 which enables a lot of variety when it comes to going with a particular section. Furthermore with majority of the audiences being college or university students with an average family income of $70,000, the buying power of the target market shows possibilities of increasing viewership.
With aspects such as 'parents showing an interest in their kids's option of home entertainment' and 'greater purchasing power in families' due to both parents contributing towards the home earnings, we can see that the home entertainment business has a lot of potential for industry players.
While technological aspects have actually contributed towards lowering the expense of home entertainment with the introduction of multimedia, truth based home entertainment, home 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 appealing than seeing movies in the house. In addition, while innovations have contributed towards the threat of 'piracy' they have also contributed towards ease of keeping and dispersing films.