As far as the legal and political factors are worried, the whole movie market is impacted by the threat of piracy which might potentially bring about an unfavorable impact on the general income of the film market. Having said that, copyright laws provide protection to the movie market in terms of discouraging piracy.
While the legal and political environment provides defense to movie makers, globalization and improvement of technological factors have increased legal challenges such as ease of piracy and violating intellectual property rights.
It needs to be noted that movies are part of the entertainment industry while expense on any type of entertainment is basically an optional expense which is more or a luxury instead of a necessity. Nevertheless, we look at the comparison of the GDP pattern with the trend in demand for films, we can see that the two are not straight proportional recommending that any change in GDP development does not always cause a change in this particular home entertainment.
As far as the social-cultural aspects are worried, it must be kept in mind that the 70% of IMAX audiences are between the ages of 19 and 56 which permits a great deal of diversity when it comes to opting for a specific section. In addition with majority of the viewers being college or university students with an average household income of $70,000, the buying power of the target market shows possibilities of increasing viewership.
With aspects such as 'parents revealing an interest in their kids's option of entertainment' and 'higher buying power in homes' due to both parents contributing towards the family income, we can see that the home entertainment service has a great deal of capacity for market gamers.
While technological factors have contributed towards decreasing the expense of entertainment with the intro of multimedia, reality based entertainment, home 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 attractive than enjoying films at home. Additionally, while developments have contributed towards the danger of 'piracy' they have also contributed towards ease of keeping and distributing films.