Cineplex Inc. president and chief executive officer Ellis Jacob isn’t concerned studios will begin bypassing traditional theatres to release films on the small screen en masse. In an interview on BNN Bloomberg, Jacob said big budget films will continue to rely on the cinema model in order to justify their blockbuster price tags.

“We are the engine that drives the train. We basically create the awareness with the guest and we also create [demand for] sequels for the studios to create, and then they can design games and theme parks behind it. And you need that as the promotional vehicle to keep these movies constantly coming into theatres,” he said Thursday. “I always use the adage, it’s trading dimes for nickels when you go directly to streaming, because you don’t have that $40 billion worth of revenue from theatrical releases around the world.”

Earlier in the summer, Disney decided to forego a theatrical release for its live-action remake of Mulan, opting instead to release the film on its streaming service Disney+. Mulan was expected to be among the biggest draws for the summer box office before the COVID-19 pandemic forced widespread theatre closures.

Ellis said he’s cautiously optimistic about consumer demand as the company opens its entire network of 164 theatres and 1,687 screens on Friday, given Cineplex’s experience with some early screen openings in Alberta.

“Initially is was a slow ramp up, but as time has gone on, it continues to improve, and it’s also dependent on the types of films you have,” he said.

“There is a real desire to get back into the theatre environment.”

The system-wide reopening will feature enhanced safety precautions including reduced theatre capacity to observe physical distancing requirements, increased cleaning protocols, and plexiglass shields at concession stands.

It comes at a critical time for Cineplex, after the chain closed all of its locations March 16. Revenue evaporated as a result, plunging 95 per cent in the second quarter to $22 million. The closures prompted most major studios to push back the release of summer tent-pole blockbusters, including Christopher Nolan’s hotly anticipated feature Tenet, now slated to be released in Canada August 27.