As far as the legal and political factors are concerned, the entire film industry is affected by the hazard of piracy which could possibly cause an unfavorable effect on the total income of the film market. Having said that, copyright laws offer defense to the movie industry in regards to preventing piracy.
While the legal and political environment offers security to film makers, globalization and improvement of technological factors have increased legal obstacles such as ease of piracy and breaching copyright rights.
It must be kept in mind that films become part of the entertainment industry while expenditure on any type of home entertainment is essentially an optional expense which is more or a high-end instead of a requirement. Nevertheless, we take a look at the comparison of the GDP pattern with the pattern in demand for movies, we can see that the two are not directly proportional suggesting that any modification in GDP development does not necessarily produce a modification in this particular home entertainment.
As far as the social-cultural aspects are worried, it ought to be noted that the 70% of IMAX audiences are between the ages of 19 and 56 which allows a great deal of diversity when it concerns going with a particular section. In addition with majority of the audiences being college or university students with an average household income of $70,000, the purchasing power of the target audience reveals possibilities of increasing viewership.
With aspects such as 'parents showing an interest in their children's choice of entertainment' and 'greater buying power in homes' due to both parents contributing towards the family income, we can see that the entertainment organisation has a lot of potential for industry gamers.
While technological factors have contributed towards reducing the expense of home entertainment with the intro of multimedia, reality based home entertainment, house 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 watching films in your home. Additionally, while innovations have contributed towards the risk of 'piracy' they have likewise contributed towards ease of saving and dispersing movies.