Disney Needs to Partner with Sesame Street

C’mon, Disney. You know you want to.

In addition to the DCAU, one of the major fandoms that I am a member of is the Muppets.  I was born in 1977 and grew up in the ‘80s, which was the peak era for Jim Henson’s manic troupe of felt vaudevillians, and I grew to love them whether they appeared on The Muppet Show, Sesame Street, or Fraggle Rock (for nomenclature’s sake, my definition of “Muppet” encompasses any creation of Jim Henson’s Creature Shop).  So, as you could imagine, I was shocked to see recent headlines regarding the end of Max’s (and, by extension, Warner Bros. Discovery’s) deal with Sesame Street, a dissolution that could be dire for the long-running children’s program moving forward.  However, I think this clears the way for a partnership with a bigger, more stable corporate monolith, and it could heal a decades-long familial divide along the way.

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Known as Children’s Television Workshop until 2000 (Stuever), Sesame Workshop is the nonprofit organization responsible for Sesame Street as well as several other educational children’s programs.  Partnered with Jim Henson’s production company, in 2001 the Workshop purchased the rights to the Sesame Street Muppets from EM.TV, a Germany-based media company that temporarily owned The Jim Henson Company and its assets from 2000 to 2003 (Retsinas).  According to a February 2019 Hollywood Reporter article, things started getting bad for the Workshop following the 2008 recession, as reliable sources of revenue, such as corporate funding and DVD sales, began to disappear, resulting in deficits and—despite its many licensing deals, grants, and royalties—reported earning of only $1.6 million in operating income in 2018, as the lion’s share of money taken in is used to produce new content (Guthrie).  In June 2013, they had to lay off 10% of their employees (Cooper), the following year, Sesame Street was “operating at a loss of $11 million” (Guthrie); and then “Sesame Workshop lost $7.4 million in fiscal 2015” (Steel).  It was these factors that forced Sesame Workshop to consider the previously unthinkable.

In a move that Sesame Workshop COO Steve Youngwood referred to as “one of the toughest decisions we ever made” (qtd. in Guthrie), the nonprofit entered into a partnership with HBO in November 2015.  Under the deal, Seasons 46-50 of Sesame Street would air first on the premium channel and on digital platforms like HBO Now and then on PBS nine months later (Stuever).  Also, with HBO’s financial backing, Sesame Workshop would be able to produce twice as many episodes as before (Stuever), but these episodes would eventually become half as long (Steel).  When asked about the deal, then-CEO Jeffrey Dunn responded that it “represents a true, winning public-private partnership model.  It provides Sesame Workshop with the critical funding it needs to continue production of Sesame Street and secure its non-profit mission of helping kids grow smarter, stronger, and kinder” (qtd. in Stuever).

Season 46 began airing on HBO on Saturday, January 23, 2016 and, almost immediately, viewers started noticing changes.  While accusations of Sesame Workshop gentrifying the Sesame Street neighborhood have been around since the 1990s, they really picked up following their cable relaunch.  Suddenly, Elmo lived in a brownstone, Abby Cadabby had a community garden, and Hooper’s Store had free Wi-Fi.  “It is more like things look now,” said puppeteer Carmen Osbahr, long-time performer of Muppet monster Rosita.  “When Sesame Street was created, it was kind of more like New York Bronx.  Now, Oscar has a recycling can” (qtd. in Steel).  In addition, the new season featured fewer celebrity appearances and parody segments, as “preschoolers often do not know the stars or understand the references” (Steel).  True, but it probably makes the show more of a burden for parents watching it with their kids.

But the most problematic change was the attention to the cast.  Since the ‘90s, the series has been accused of essentially becoming “The Elmo Show,” with the popular red Muppet becoming the main character over others like Big Bird, the original surrogate character that the target demographic could identify with.  In fact, The Final Edition Radio Hour did a sketch making fun of this preferential treatment in May 2013, with the lesser-used Muppets going on strike to protest the disparity:

However, with the new season, the focus tightened on Elmo, Abby, Rosita, and Cookie Monster, under the pretense that viewers would see “familiar faces each week,” said Brown Johnson, executive vice president and creative director at Sesame Workshop (qtd. in Steel).  As a result, while veteran Muppets like Big Bird, Bert and Ernie, and Oscar the Grouch would still make appearances, they would be pushed further into the background.

Overall, the partnership was successful, allowing Sesame Workshop to continue producing the long-running series, but there was criticism over the deal, as some saw it as a move away from its original mission: providing free engaging, educational programming to young children regardless of their household’s income range.  Said Gizmodo critic Katharine Trendacosta in a January 2016 article:

Even though HBO has supposedly left creative control to the Sesame Workshop, it’s hard not to view these changes as ones based on the market and not on education.  The changes stand to fuel the existing criticism that the new Sesame Street isn’t for every child.  Now, the beloved show is only for people who can afford to have HBO.

Regardless, in 2019, Sesame Workshop signed a new five year deal with the then-developing HBO Max to not only fund five new seasons, but to make available the series’ back catalogue of roughly 5,000 episodes for streaming (rather than put them all on the streaming service, HBO Max would make selected episodes available, similar to how they curate their selection of classic Looney Tunes shorts; Lussier).  But while funding was confirmed, changes to their partner would soon have long-term effects.

As discussed previously on this website, HBO Max’s parent company, WarnerMedia, was sold by owner AT&T to Discovery, Inc. in April 2022, forming Warner Bros. Discovery (Maas), and its new president and CEO, David Zaslav, began making changes to the service in an attempt to “find $3 billion in savings in an effort to reduce its $55 billion in debt” (Holpuch).  In addition to the 70 staff members laid off from the streaming service, they pulled 36 series from the platform—including The Not-Too-Late Show with Elmo—as well as nearly 200 episodes of Sesame Street—“most from the first 40 years of the show” (Holpuch).  When asked about the content purge, which largely affected children’s and animated programs, HBO Max (soon to be rebranded as simply Max) responded thusly:

As we work toward bringing our content catalogues together under one platform, we will be making changes to the content offering available on both HBO Max and Discovery+.  That will include the removal of some content from both platforms. (qtd. in Sherman)

There are a number of factors concerning this reduction of content.  While we don’t know the ins and outs of the deal Sesame Workshop inked with HBO Max, it is possible that the purge could have been to reduce or eliminate residuals, “including so-called back-end payments to cast, crew, and writers, based on long-term viewership metrics” (Sherman).  As we know, there has been a push to ensure that the people who work in the entertainment industry to be compensated fairly for streaming royalties (culminating in the 2023 Writer’s Guild of America and SAG-AFTRA strikes), so it’s possible that it was done to eliminate those payments.  However, the more likely reason was the fact that new parent company wanted to move away from children’s programming, as “according to people familiar with the matter,” Sesame Street wasn’t pulling strong enough numbers (Sherman). 

(This claim is up for debate because, one day later, an article from ScreenRant discussed how a third party analytics firm, Samba TV, released a Q2 report stating that Sesame Street was “the streaming service’s biggest brand” [Bacon].  In contrast, the real problem, according to author Thomas Bacon, is that while Sesame Street does bring in viewers, “these viewers simply don’t engage with the wider platform, and thus are no longer considered a corporate priority.”  Apparently, the fact that these preschoolers have no interest in watching Game of Thrones and The Sopranos after Elmo is the real problem.)

These are the circumstances leading to Max’s December 2024 decision not to renew their deal with Sesame Workshop.  While Season 55 is to begin airing in January 2025, this will be the last season produced, though Max will retain the rights to all Sesame Street content until 2027 (Weprin).  In reference to the ten-year partnership, an anonymous spokesperson for Max said the following:

It has been a wonderful, creative experience working with everyone at Sesame Street on the iconic children’s series, and we are thrilled to be able to keep some of the library series on Max in the U.S.  As we’ve launched Max though and based on consumer usage and feedback, we’ve had to prioritize our focus on stories for adults and families, and so new episodes from Sesame Street, at this time, are not as core to our strategy. (qtd. in Weprin)

And a Sesame Workshop spokesperson had this to say:

We are excited to extend our 10-year partnership with Warner Bros. Discovery, keeping Sesame Street’s iconic library available on Max through 2027.  We will continue to invest in our best-in class programming and look forward to announcing our new distribution plans in the coming months, ensuring that Sesame Street reaches as many children as possible for generations to come. (qtd. in Weprin)

So, in the absence of Max’s funding, Sesame Workshop is back where it started a decade ago—in desperate need of cash in order to keep creating new educational content that will find its way to children on public television.  Eventually.  The problem is that they need a new partner who specializes in children’s entertainment, and I can think of no better partner than the Walt Disney Company … especially considering how Disney is the current owner of their cousins, the Muppets from The Muppet Show.

Truly a Match Made in Henson

Acquired by Disney in February 2004, the company’s attempts to utilize their Muppets have, at best, been mixed, and aside from Disney+’s recent The Muppets Mayhem series the property has been dormant.  What if Disney and Sesame Workshop could reach an agreement to fund Sesame Street in a similar manner to the original HBO deal and, along the way, revitalize the “Disney” Muppets in the process? After all, both groups have historically crossed over frequently over the years, collaborating on multiple productions.

While Sesame Street and The Muppet Show were intended to be separate series with different audiences, there was plenty of overlap between them.  The most obvious example is, of course, Kermit the Frog, who made infrequent appearances on Sesame Street over the decades, most notably as the roving reporter for Sesame Street News:

And the Sesame Street Muppets made regular appearances on The Muppet Show, as well as in the Muppet movies:

In addition to their respective shows, they also appeared together in multiple specials, such as in a March 1982 sketch about the Second Continental Congress, which aired as part of Norman Lear’s special I Love Liberty:

And again in 1987, in a segment honoring Jim Henson during The Television Academy Hall of Fame:

And, perhaps most importantly, they appeared in the 1987 holiday special A Muppet Family Christmas, featuring not only a joining of Muppet Show and Sesame Street casts, but also characters from Muppet Babies and Fraggle Rock as well:

However, since 2004, the properties have been divided, like an ugly divorce, with the Muppet Show Muppets owned by Disney, the Sesame Street Muppets owned by Sesame Workshop, and the Fraggle Rock Muppets owned by the Jim Henson Company.  The legalities are so complicated that the above special is not currently available for sale or download, which is a crime considering how it is one of the last major Muppet projects featuring the entire cast of original performers. A deal between Disney and Sesame Workshop could begin the mending of those fences. Besides, the Henson family obviously trusted Disney to be appropriate stewards of the Muppet Show Muppets, as Lisa Henson recounted in a 2004 press release: 

In the months before his death in 1990, my father Jim Henson pursued extensive discussions with the Walt Disney Company based on his strong belief that Disney would be a perfect home for the Muppets.  As such, the deal we announced today is the realization of my father’s dream and ensures that the Muppet characters will live, flourish, and continue to delight audiences everywhere, forever.  My brothers and sisters—Brian, Cheryl, John, Heather—and I are so proud to have the Muppets living under the same roof as Walt Disney’s own timeless characters.  We could not possibly be more pleased. (qtd. in “Walt”)

Of course, the whitewashed, rose-tinted memory of the original 1990 negotiations is a different animal from the story recounted in a June 1990 Washington Post article detailing the “culture clash” between Disney and Jim Henson Productions (Masters).  Among other things, this included the fact that then-Disney CEO Michael Eisner wanted to acquire the Sesame Street Muppets as well as The Muppet Show Muppets, which—at the time—was described as “a deal breaker” for Henson (Masters).  According to Joan Ganz Cooney, cofounder of Sesame Workshop, “Henson regarded ‘Sesame Street’ as ‘a holy place’ to be kept separate and apart from Disney,” presumably out of interest of maintaining the product’s integrity and legacy (Masters).  However, if I may be blunt, that ship sailed following the initial HBO deal, and now the demands of the moment must contend not with Sesame Street’s purity, but with its survival.

The Lovers, the Dreamers, and Me

A deal between Disney and Sesame Workshop could provide for a continuation of their shared legacy, allowing for a return to form not seen since 2001.  For example, despite the claims made in the 2011 Muppet film, which placed the Muppet’s home base in Los Angeles, I always pictured the Muppet Theater as an off-Broadway location in New York City, possibly blocks away from Sesame Street’s Bronx-like locale.  What if—in addition to being a street—they retconned Sesame Street into a New York neighborhood where the majority of the Muppets lived (a detail all but confirmed by Big Bird in the above clip)?  That could open up a whole host of possibilities similar to the “Around the Corner” Sesame Street era, where they attempted to broaden the cast and locations for segments.  Not only could Kermit resume his appearances and his “reporter” role with Disney’s blessing, but it could also mean cameos by the other Muppet Show characters and even some retired Sesame Street characters, thus raising their profiles for future projects.  And for those of you who point out how the Muppet Show characters are too adult for Sesame Street, let me remind you that Disney has basically treated them like a children’s property for years now.  Frankly, there’s little difference at this point.

Imagine segments with Don Music playing piano with Rowlf the Dog.  Or Sweetums hanging out with Grover and Harry Monster.  Or Floyd and Dr. Teeth buying “stuff” from Lefty the Salesman.

You just know that “8” fell off the back of a truck.

The alternative is a continuation of the schism, with Sesame Street's future uncertain and the Muppet Show cast treated by Disney like the dinnerware you use only for special occasions. Both could use the other for a boost. Besides, I miss the days when Kermit the Frog could just bump into Big Bird or Grover and it wasn’t a big deal. And while it’s true that it wouldn’t fix the divide with Fraggle Rock, it would be a step in the right direction. Eventually, I want the original Muppet family back together.

Works Cited

Bacon, Thomas.  “HBO Max Removing Sesame Street is an Even Bigger Mistake Than Batgirl.”  ScreenRant.  Valnet Publishing Group.  23 Aug. 2022.  <https://screenrant.com/hbo-max-sesame-street-episodes-removed-decision-bad/>.  Accessed 29 Dec. 2024.

Cooper, Gael Fashingbauer.  “’C’ is for Cutbacks:  ‘Sesame’ Lays Off Workers.”  Today.  NBCUniversal Media, LLC.  25 Jun. 2013.  <https://www.today.com/entertainment/c-cutbacks-sesame-lays-workers-6C10450530>.  Accessed 29 Dec. 2024.

Guthrie, Marisa.  “‘Where ‘Sesame Street’ Gets Its Funding—and How It Nearly Went Broke.”  The Hollywood Reporter.  Penski Media Corporation.  6 Feb. 2019.  <https://www.hollywoodreporter.com/news/general-news/sesame-street-gets-funding-how-it-went-broke-1183032/>.  Accessed 29 Dec. 2024.

Holpuch, Amanda.  “HBO Max Pulls Nearly 200 ‘Sesame Street’ Episodes.”  Internet Archive.  Internet Archive.  20 Aug. 2022.  <https://web.archive.org/web/20220821002034/https://www.nytimes.com/2022/08/20/arts/television/sesame-street-hbo-max.html>.  Accessed 29 Dec. 2024.

Lussier, Germain.  “You Can Hardly Count How Much Sesame Street is Coming to HBO Max.”  Gizmodo.  Gizmodo USA, LLC.  3 Oct. 2019.  <https://gizmodo.com/you-can-hardly-count-how-much-sesame-street-is-coming-t-1838743995>.  Accessed 29 Dec. 2024.

Maas, Jennifer.  “Discovery Closes Acquisition of AT&T’s Warner Media.”  Variety.  Variety Media, LLC.  8 Apr. 2022.  <https://variety.com/2022/tv/news/discovery-warnermedia-merger-close-warner-bros-discovery-1235200983/>. Accessed 28 Jun. 2024.

Masters, Kim.  “Disney’s Muppet Miasma.”  The Washington Post.  The Washington Post.  12 Jun. 1990.  <https://www.washingtonpost.com/archive/lifestyle/1990/06/13/disneys-muppet-miasma/4a62dab3-5e5f-4408-834c-f1e619aacb80/>.  Accessed 30 Dec. 2024.

Retsinas, Greg.  “Hensons Buying Back the Muppets for $89 Million.”  Internet Archive.  Internet Archive.  8 May 2003.  <https://web.archive.org/web/20180104215639/http://www.nytimes.com/2003/05/08/business/hensons-buying-back-the-muppets-for-89-million.html>.  Accessed 30 Dec. 2024.

Sherman, Alex.  “Here’s Why HBO Max is Pulling Dozens of Films and TV Series from the Streaming Platform.”  CNBC.  CNBC, LLC.  19 Aug. 2022.  <https://www.cnbc.com/2022/08/19/heres-why-hbo-max-is-pulling-dozens-of-films-and-tv-series-from-its-streaming-platform.html>.  Accessed 30 Dec. 2024.

Steel, Emily.  “’Sesame Street’ Gets New Upscale Look for HBO Premiere.”  Internet Archive.  Internet Archive.  18 Jan. 2016.  <https://web.archive.org/web/20160118142417/https://www.nytimes.com/2016/01/13/business/media/sesame-street-on-hbo.html?emc=edit_th_20160113&nl=todaysheadlines&nlid=58656522&_r=1&module=CloseSlideshow&region=SlideShowTopBar&version=SlideCard-3&action=click&contentCollection=Media&pgtype=imageslideshow>.  Accessed 29 Dec. 2024.

Stuever, Hank.  “HBO Gets ‘Sesame Street’ for the Next Five Seasons (Don’t Freak Out—PBS Will Still Have the Show, Too).”  Internet Archive.  Internet Archive.  27 Nov. 2015.  <https://web.archive.org/web/20151127112327/https://www.washingtonpost.com/news/arts-and-entertainment/wp/2015/08/13/hbo-gets-sesame-street-for-the-next-five-seasons-dont-freak-out-pbs-will-still-have-the-show-too/>.  Accessed 29 Dec. 2024.

Trendacosta, Katharine.  “HBO’s Sesame Street Sounds Like a Yuppie Hell.”  Gizmodo.  Gizmodo USA, LLC.  13 Jan. 2016.  <https://gizmodo.com/hbos-sesame-street-sounds-a-yuppie-hell-1752699958>.  Accessed 29 Dec. 2024.

“Walt Disney Company and the Jim Henson Company Sign Agreement for Disney to Buy the ‘Muppets’ and ‘Bear in the Big Blue House, The.’”  Internet Archive.  Internet Archive.  17 Feb. 2004.  <https://web.archive.org/web/20041207182316/http://corporate.disney.go.com/news/corporate/2004/2004_0217_kermit.html>.  Accessed 29 Dec. 2024.

Weprin, Alex.  “‘Sesame Street’ Hits the Market:  HBO and Max Opt Not to Renew Deal for New Episodes (Exclusive).”  The Hollywood Reporter.  Penski Media Corporation.  13 Dec. 2024.  <https://www.hollywoodreporter.com/business/business-news/hbo-cancels-sesame-street-licensing-deal-show-streaming-service-1235985075/>.  Accessed 29 Dec. 2024.

Images courtesy of Warner Bros. Discovery, Sesame Workshop, and the Walt Disney Company. “Sesame Street Muppets Go on Strike” courtesy of The Final Edition Radio Hour; YouTube videos courtesy of the HBO, Sesame Street, Chaz Simon, PFAWdotorg, Tiny Dancer, and the Parkscope Blog (Parkscope) channels.