As far as the political and legal aspects are concerned, the whole film industry is affected by the risk of piracy which might potentially cause an unfavorable impact on the general income of the film market. Having said that, copyright laws use defense to the film industry in regards to dissuading piracy.
While the political and legal environment provides protection to movie makers, globalization and improvement of technological factors have actually increased legal challenges such as ease of piracy and breaking intellectual property rights.
It needs to be noted that motion pictures belong to the entertainment industry while expense on any type of entertainment is generally an optional expense which is more or a high-end rather than a necessity. However, we look at the contrast of the GDP pattern with the pattern in demand for movies, we can see that the two are not straight proportional suggesting that any modification in GDP growth does not always produce a change in this specific entertainment.
As far as the social-cultural elements are concerned, it should be kept in mind that the 70% of IMAX viewers are between the ages of 19 and 56 which permits a great deal of variety when it comes to going with a specific 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 revealing an interest in their kids's choice of home entertainment' and 'greater buying power in homes' due to both parents contributing towards the home earnings, we can see that the entertainment business has a great deal of capacity for industry gamers.
While technological factors have actually contributed towards decreasing the cost of home entertainment with the intro 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 customers in order to make it more appealing than enjoying movies at home. Furthermore, while innovations have contributed towards the hazard of 'piracy' they have also contributed towards ease of storing and distributing films.