As far as the political and legal factors are concerned, the entire movie market is affected by the risk of piracy which could possibly produce a negative effect on the total revenue of the film market. Having said that, copyright laws offer protection to the film market in terms of dissuading piracy.
While the legal and political environment provides defense to movie makers, globalization and development of technological elements have actually increased legal difficulties such as ease of piracy and violating intellectual property rights.
It should be noted that motion pictures belong to the entertainment industry while expense on any kind of entertainment is essentially an optional cost which is more or a luxury instead of a necessity. Nevertheless, we look at the contrast of the GDP pattern with the trend in demand for films, we can see that the two are not straight 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 concerned, it must be noted that the 70% of IMAX viewers are in between the ages of 19 and 56 which permits a lot of variety when it concerns going with a particular segment. Furthermore with majority of the viewers being college or university students with an average household earnings of $70,000, the buying power of the target audience shows possibilities of increasing viewership.
With aspects such as 'parents revealing an interest in their children's choice of home entertainment' and 'higher purchasing power in households' due to both parents contributing towards the home income, we can see that the entertainment organisation has a great deal of potential for industry players.
While technological aspects have actually contributed towards reducing the cost of entertainment with the intro of multimedia, truth based entertainment, house theatres, cable television networks, the pressure on theatres has increased in regard to making the theatre experience richer for consumers in order to make it more appealing than enjoying motion pictures in the house. Additionally, while innovations have contributed towards the danger of 'piracy' they have actually also contributed towards ease of saving and dispersing films.