As far as the political and legal elements are worried, the entire film industry is affected by the threat of piracy which might possibly bring about a negative impact on the overall revenue of the film market. Having stated that, copyright laws provide security to the film market in regards to dissuading piracy.
While the political and legal environment offers protection to film makers, globalization and advancement of technological factors have actually increased legal obstacles such as ease of piracy and violating copyright rights.
It should be kept in mind that motion pictures belong to the show business while expenditure on any kind of home entertainment is basically an optional expense which is more or a luxury rather than a need. Nevertheless, 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 straight proportional suggesting that any change in GDP development does not necessarily cause a change in this specific home entertainment.
As far as the social-cultural elements are worried, it should be kept in mind that the 70% of IMAX audiences are between the ages of 19 and 56 which enables a great deal of diversity when it concerns selecting a specific sector. Furthermore with majority of the viewers being college or university students with a typical household earnings of $70,000, the acquiring power of the target audience shows possibilities of increasing viewership.
With factors such as 'moms and dads revealing an interest in their children's choice of home entertainment' and 'higher buying power in families' due to both moms and dads contributing towards the family income, we can see that the home entertainment service has a great deal of capacity for industry players.
While technological factors have contributed towards reducing the cost of entertainment with the introduction of multimedia, reality based entertainment, house theatres, cable networks, the pressure on theatres has increased in term of making the theatre experience richer for consumers in order to make it more appealing than seeing motion pictures in the house. In addition, while innovations have contributed towards the risk of 'piracy' they have actually likewise contributed towards ease of saving and dispersing films.