As far as the political and legal elements are worried, the entire film market is affected by the threat of piracy which could potentially produce a negative effect on the total earnings of the film market. Having stated that, copyright laws offer defense to the movie industry in regards to discouraging piracy.
While the legal and political environment provides protection to film makers, globalization and improvement of technological elements have increased legal obstacles such as ease of piracy and violating intellectual property rights.
It must be kept in mind that movies are part of the show business while expense on any form of entertainment is generally an optional expenditure which is more or a luxury rather than a necessity. However, we look at the contrast of the GDP trend with the trend in demand for motion pictures, we can see that the two are not straight proportional recommending that any change in GDP growth does not necessarily bring about a modification in this particular entertainment.
As far as the social-cultural elements are concerned, it needs to be kept in mind that the 70% of IMAX audiences are in between the ages of 19 and 56 which allows a lot of variety when it concerns choosing a specific sector. In addition with bulk of the viewers being college or university students with an average home income of $70,000, the acquiring power of the target market shows possibilities of increasing viewership.
With elements such as 'moms and dads showing an interest in their children's option of entertainment' and 'greater purchasing power in families' due to both parents contributing towards the household earnings, we can see that the entertainment service has a lot of potential for industry players.
While technological elements have actually contributed towards decreasing the expense of entertainment with the intro of multimedia, truth based entertainment, house theatres, cable networks, the pressure on theatres has increased in term of making the theatre experience richer for consumers in order to make it more appealing than watching motion pictures in the house. In addition, while innovations have contributed towards the threat of 'piracy' they have also contributed towards ease of keeping and dispersing films.