As far as the legal and political factors are worried, the entire movie market is impacted by the hazard of piracy which could possibly produce an unfavorable effect on the general revenue of the film market. Having stated that, copyright laws provide defense to the movie market 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 difficulties such as ease of piracy and breaching intellectual property rights.
It must be kept in mind that films are part of the entertainment industry while expense on any form of entertainment is basically an optional cost which is more or a high-end rather than a requirement. We look at the comparison of the GDP pattern with the pattern in need for films, we can see that the two are not straight proportional recommending that any modification in GDP growth does not necessarily bring about a change in this specific home entertainment.
As far as the social-cultural factors are worried, it should be kept in mind that the 70% of IMAX viewers are in between the ages of 19 and 56 which permits a lot of variety when it concerns choosing a particular segment. In addition with bulk of the audiences being college or university students with a typical household income of $70,000, the purchasing power of the target audience shows possibilities of increasing viewership.
With aspects such as 'parents showing an interest in their kids's choice of home entertainment' and 'greater purchasing power in homes' due to both parents contributing towards the family earnings, we can see that the entertainment business has a great deal of capacity for market players.
While technological elements have actually contributed towards reducing the expense of home entertainment with the introduction of multimedia, truth based entertainment, house theatres, cable networks, the pressure on theatres has increased in term of making the theatre experience richer for customers in order to make it more appealing than enjoying movies at home. Additionally, while developments have contributed towards the danger of 'piracy' they have likewise contributed towards ease of saving and dispersing movies.