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· Posted on
May 21, 2025

Netflix buys the rights to Sesame Street after HBO cuts its partnership...and Big Bird just got a big new gig

Netflix will now stream the upcoming 56th season of Sesame Street as well a library of its classic episodes.

What's the key learning?

  • Streaming platforms loves kids content because it’s one of the greatest drivers of subscriber retention.
  • Parents are pretty much willing to pay for anything that will avoid a nagging kid.
  • So by snapping up Sesame Street, Netflix is locking in the kind of content that keeps families subscribed month after month.

👉 Background: Sesame Street is produced by Sesame Workshop, a nonprofit organisation founded in 1969. Since then Sesame Street has been using puppets to teach kids their ABCs, 123s and occasional life lessons from a 2-metre tall yellow bird. In fact, Sesame Street is now shown in more than 150 countries and reaches more than 156 million kids.

👉 What happened:
Back in 2019, Sesame Street started streaming on the streaming platform Max (then HBO Max) through Warner Bros Discovery. But, last year, Warner Bros Discovery decided not to renew the deal and for a moment, it looked like Cookie Monster might need to sell his last biscuit.

👉 What else:
Now, Netflix has swooped in, which means Netflix will stream the upcoming 56th season of Sesame Street as well a library of its classic episodes. And, this is all part of Netflix’s strategy to own children’s content.

What's the key learning?

💡As families move away from pay-TV, streaming platforms are in a tug-of-war for toddler attention. Not only does kids content perform well, but it’s one of the greatest drivers of subscriber retention

💡Get this: the kids' series Cocomelon and Peppa Pig were some of the most-streamed shows of 2024 on Netflix, even ahead of Young Sheldon.

💡This ain’t Netflix’s first foray into the kids content world:

  • It already holds the streaming rights to Ms. Rachel and CoComelon — two of the most popular children's YouTube channels globally
  • It also has the rights to Peppa Pig
  • In 2021, it bought the golden ticket to acquire Roald Dahl rights for $686 million USD

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