As far as the political and legal elements are worried, the entire movie market is impacted by the threat of piracy which might potentially cause a negative influence on the general revenue of the movie market. Having stated that, copyright laws provide security to the film industry in regards to preventing piracy.
While the political and legal environment provides protection to film makers, globalization and improvement of technological aspects have increased legal challenges such as ease of piracy and breaking intellectual property rights.
It must be noted that motion pictures become part of the entertainment industry while expenditure on any form of entertainment is basically an optional expense which is more or a luxury instead of a necessity. Nevertheless, we look at the contrast of the GDP trend with the pattern in demand for films, we can see that the two are not directly proportional suggesting that any change in GDP growth does not always produce a modification in this specific entertainment.
As far as the social-cultural elements are concerned, it should be kept in mind that the 70% of IMAX audiences are in between the ages of 19 and 56 which allows a lot of variety when it concerns selecting a specific sector. In addition with bulk of the audiences being college or university students with an average household income of $70,000, the buying power of the target market reveals possibilities of increasing viewership.
With factors such as 'parents revealing an interest in their children's choice of home entertainment' and 'greater buying power in households' due to both moms and dads contributing towards the household earnings, we can see that the entertainment business has a lot of potential for market players.
While technological aspects have actually contributed towards decreasing the expense of home entertainment with the intro of multimedia, reality based home entertainment, house theatres, cable 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 viewing movies at home. In addition, while developments have contributed towards the threat of 'piracy' they have likewise contributed towards ease of storing and dispersing films.