HBOFAQ: An Explainer of Sesame Street’s Situation

Published: December 30, 2024
Categories: Feature

As you’ve probably heard, it feels like the clouds are finally rolling into Sesame Street. Recently, Warner Bros Discovery revealed it will not be renewing their agreement to distribute new episodes of the beloved series on HBO and their streaming service Max, leaving the show with an uncertain future. Unsurprisingly, this news has brought an outpouring of big feelings, and more importantly, a lot of questions. As the show has taught children for decades, asking questions is a very good way of finding out about something. In that spirit, and in an attempt to stem the tide of misinformation that crops up after a big news story like this, I’ve come up with some answers from some of the more frequently asked questions people have had.

Has Sesame Street been cancelled?

Not yet. Remember, Warner Bros never owned Sesame Street, only the rights to distribute it. Sesame Workshop owns Sesame Street; it always has. Right now, Sesame Workshop is working to find a new distributor that will help them cover the costs of production.

Why did WBD decide not to renew the agreement?

As WBD revealed to The Hollywood Reporter’s Alex Weprin, the company has decided to focus their spending on programs for adults and families, and a show aimed primarily at preschool-aged children doesn’t fit their current plan.

But Max is still distributing the show’s back catalog?

Yes. While they won’t be supporting new episodes, they do have rights to the Sesame library through 2027. So a new distributor wouldn’t have any rights to older episodes at least until that deal expires.

Why can’t they go back to PBS?

Here’s a bit of good news: Sesame Street never left PBS. As part of the agreement with WBD, new episodes premiered on HBO, and later Max, but aired on PBS several months later. 

So why can’t they make PBS their primary home once again?

Because in the current media and political climate, that would be unsustainable. Sesame Street isn’t a cheap show to produce. Between multiple sets, building and rebuilding puppets, and a large cast of actors and puppeteers, the costs add up quickly. And with a party that has repeatedly tried to end federal funding to the Corporation for Public Broadcasting, which helps support PBS, about to take control of the presidency and both chambers of Congress, there’s a very good chance that PBS could be fighting for its survival as well. It’s not exactly the best ground to build a home on at the moment.

Could they continue to air new episodes on PBS later, after they’ve run on a different distributor, like the WBD deal?

It’s certainly possible, and given Sesame’s legacy of educating children regardless of their economic background, I certainly hope they will. But that would have to be decided between Sesame Workshop and whichever distributor they decide to partner with.

They should move the show to (Apple TV+/Disney+/Netflix/Prime Video/insert your streamer of choice here)! Why haven’t they reached a deal yet?

Sesame Workshop has to find the right distributor to make a deal with. It wouldn’t be in their best interest to make another deal with someone, only for them to later decide that, like WBD, they too no longer want to put money into preschool-age entertainment. Then Sesame would be right back where they started. They may also be searching for someone who will continue to let them broadcast episodes on PBS as well. This is a process that’ll likely take some time.

The money they make from merchandising must be enough to cover production. What’s preventing that from making the show self-sustaining?

Sesame Workshop also does a lot of outreach productions that aren’t covered by any distribution deal, including resources for children with family members in the military or who are incarcerated, for example. Additionally, Sesame Workshop partially funds their international productions around the world. The organization does a lot beyond Sesame Street, which is why they need to find the deal that will benefit them the most.

Why don’t they just put new episodes on their YouTube channel?

That may very well be an option, but YouTube’s kids content can’t include advertising, so YouTube can’t sustain the show. According to a recent report from The Washington Post, the revenue from the WBD deal totaled in the tens of millions. With rising costs, odds are they’ll need more than what they did when that deal was reached.

I remember hearing that the show was planning a massive format change. Does this have anything to do with finding a new home?

It’s unclear, but that same report from the Post does touch on the massive format change which we learned about in October 2023. Beginning with season 56, the show will forgo its longtime magazine-style format, which interspersed the main “street story” with songs, cartoons, and other video segments. Now, episodes will consist of two 11-minute “street stories” told straight through, separated by a 5-minute recurring animated segment called “Tales from 123,” set within the iconic 123 Sesame Street building. The change was planned in an attempt to build a broader appeal within its target audience of preschool-aged kids, but that may also make it more attractive to distributors as well. If they know more kids are watching, that could be an incentive to bring Sesame Street under their tent.

I’ve been hearing that going forward, the show will only focus on a small handful of characters. Will I never see Big Bird or Bert and Ernie again?

I’d put the chances of those characters heading to the Dead Muppets Wall between slim and none. As the Post report explained, episodes beginning with season 56 will focus on four main characters: Elmo, Abby Cadabby, Cookie Monster, and Grover. This is being done to get kids to more deeply identify with a smaller lead cast, and not overwhelm them with characters that don’t show up as often. That’s not to say that the others won’t be featured at all, they’ll just be in the supporting cast.

Why are they planning so much of season 56 if they don’t have a distributor yet?

Because of how long it takes to produce a season of television, work begins months, if not years, in advance. Animation takes even longer. If they know the direction they’re heading in before they have a distributor, they can hit the ground running once they know they have the funding they need.

So what about season 55?

Season 55 will air on Max, and later on PBS, as the final season in WBD’s distribution agreement. It premieres January 16, 2025.

What happens if they don’t find a distributor soon?

The good news is that no network or streaming service can cancel Sesame Street, because they don’t own it. So as long as Sesame Workshop’s determined to find it a home, they have all the time they need. There’s no need for the Word on the Street to be “panic” just yet.

What can I do to help?

I wish I had a more optimistic ending for this piece, but the truth is there isn’t much anyone can do right now. It’s in the hands of Sesame Workshop now as they look to find the best home for them. That said, watching Sesame Street, either on Max, PBS, or YouTube couldn’t hurt. If they can show they still have a solid viewership, it’s more likely they can convince potential distributors to partner with a show that’s been a TV staple for more than half a century. You can also donate to Sesame Workshop, which is a not-for-profit organization. It won’t replace the tens of millions needed in a distribution deal, but every little bit helps as they continue operation during their search for a new place for more sunny days.

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by Matthew Soberman – Matthew@ToughPigs.com

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