As far as the political and legal elements are worried, the whole film market is affected by the threat of piracy which might possibly bring about an unfavorable effect on the total revenue of the movie industry. Having said that, copyright laws provide protection to the movie market in terms of dissuading piracy.
While the political and legal environment uses defense to film makers, globalization and improvement of technological aspects have increased legal obstacles such as ease of piracy and breaking copyright rights.
It must be noted that motion pictures are part of the entertainment industry while expenditure on any kind of entertainment is generally an optional cost which is more or a high-end rather than a need. 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 straight proportional suggesting that any modification in GDP growth does not always cause a modification in this specific entertainment.
As far as the social-cultural elements are worried, it needs to be noted that the 70% of IMAX audiences are between the ages of 19 and 56 which permits a lot of diversity when it concerns opting for a specific sector. Additionally with majority of the audiences being college or university students with a typical family earnings of $70,000, the acquiring power of the target audience shows possibilities of increasing viewership.
With elements such as 'parents showing an interest in their kids's choice of entertainment' and 'higher purchasing power in families' due to both parents contributing towards the household earnings, we can see that the entertainment company has a great deal of potential for industry gamers.
While technological elements have contributed towards decreasing the cost of entertainment with the intro of multimedia, reality based home entertainment, home theatres, cable networks, the pressure on theatres has actually increased in term of making the theatre experience richer for customers in order to make it more appealing than viewing films in the house. Additionally, while innovations have actually contributed towards the risk of 'piracy' they have actually likewise contributed towards ease of saving and distributing movies.