As far as the legal and political factors are concerned, the entire film market is affected by the threat of piracy which might potentially cause a negative influence on the total earnings of the movie market. Having stated that, copyright laws provide defense to the film market in regards to dissuading piracy.
While the political and legal environment provides defense to movie makers, globalization and improvement of technological elements have increased legal difficulties such as ease of piracy and breaching copyright rights.
It needs to be noted that motion pictures belong to the show business while expenditure on any type of entertainment is basically an optional expense which is more or a luxury instead of a need. We look at the contrast of the GDP trend with the pattern in demand for motion pictures, we can see that the 2 are not directly proportional suggesting that any modification in GDP growth does not necessarily bring about a change in this specific home entertainment.
As far as the social-cultural elements are concerned, it ought to be noted that the 70% of IMAX viewers are between the ages of 19 and 56 which enables a great deal of variety when it concerns choosing a specific sector. Additionally with bulk of the viewers 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 aspects such as 'parents revealing an interest in their children's choice of entertainment' and 'higher purchasing power in households' due to both parents contributing towards the family income, we can see that the entertainment service has a lot of potential for industry players.
While technological elements have contributed towards decreasing the expense of home entertainment with the intro of multimedia, reality based home entertainment, house theatres, cable networks, the pressure on theatres has increased in regard to making the theatre experience richer for consumers in order to make it more attractive than seeing movies at home. Furthermore, while innovations have contributed towards the hazard of 'piracy' they have also contributed towards ease of keeping and dispersing films.