Sesame Street Signs New Deal with Netflix Amid Financial Struggles

NEW YORK, NY — After months of financial challenges, “Sesame Street” has signed a new distribution deal with Netflix, the show announced Monday. The agreement promises to deliver new episodes of the beloved children’s program to more than 300 million Netflix subscribers.

This marks a significant expansion for “Sesame Street,” as episodes will also be available on PBS, allowing access to brand-new content for the first time in about a decade. The new agreements will take effect later this year.

Sesame Workshop, which produces the iconic show, has faced a crisis leading to significant staff layoffs. Approximately 20% of the nonprofit’s workforce was cut this year following a decline in funding and the expiration of its previous lucrative deal with HBO.

Since 2015, HBO paid Sesame Workshop $30 million to $35 million annually for new content. However, Warner Bros. Discovery, HBO’s parent company, decided not to renew the deal as it shifts focus away from children’s programming.

While the financial terms of the Netflix deal weren’t disclosed, Sesame Workshop officials have cautioned employees about expected lower revenues compared to the HBO agreement. In a message to staff, CEO Sherrie Westin highlighted the deal’s significance, saying it would allow “Sesame Street” to reach many more households. Yet, she emphasized the need for new strategies to sustain operations amidst changing market conditions.

Notably, the Netflix agreement includes exclusive global premiere rights to the next three seasons of “Sesame Street” and access to 90 hours of older episodes. Netflix will also have the ability to create video games related to the program.

The deal has emerged in a challenging climate for children’s content on streaming platforms. Netflix reported that kid and family programming accounts for 15% of total viewership.

“Public media is essential,” said Sara DeWitt, PBS KIDS senior vice president. “Providing new, high-quality content to children across the country for free helps prepare them for success in school and life.”

The first batch of new episodes, part of the reimagined season, is expected to be released later this year, featuring a new format focused on character-driven stories.