As far as the political and legal elements are concerned, the whole film market is impacted by the threat of piracy which might possibly produce a negative effect on the overall income of the film industry. Having stated that, copyright laws provide defense to the movie market in regards to dissuading piracy.
While the political and legal environment offers security to film makers, globalization and improvement of technological factors have increased legal difficulties such as ease of piracy and violating intellectual property rights.
It must be kept in mind that films become part of the show business while expense on any form of home entertainment is generally an optional cost which is more or a high-end instead of a need. Nevertheless, we take a look at the comparison of the GDP pattern with the pattern in demand for motion pictures, we can see that the two are not directly proportional recommending that any change in GDP growth does not always bring about a modification in this particular entertainment.
As far as the social-cultural elements are concerned, it must be noted that the 70% of IMAX audiences are in between the ages of 19 and 56 which allows a great deal of variety when it comes to going with a specific segment. Furthermore with majority of the audiences being college or university students with an average family income of $70,000, the buying power of the target audience shows possibilities of increasing viewership.
With factors such as 'moms and dads revealing an interest in their kids's choice of entertainment' and 'greater buying power in families' due to both moms and dads contributing towards the family income, we can see that the home entertainment company has a lot of capacity for market gamers.
While technological aspects have actually contributed towards lowering the cost of home entertainment with the introduction of multimedia, truth based entertainment, home theatres, cable television networks, the pressure on theatres has increased in term of making the theatre experience richer for consumers in order to make it more attractive than viewing movies in your home. In addition, while innovations have contributed towards the threat of 'piracy' they have actually also contributed towards ease of keeping and dispersing movies.