This announcement follows significant layoffs at Sesame Workshop, where about 20% of staff were let go due to financial challenges stemming from the end of its funding deal with Warner Bros.

On May 19, 2025, Sesame Workshop announced a significant streaming deal with Netflix, allowing new episodes of 'Sesame Street' to air simultaneously on Netflix, PBS, and the PBS Kids app later in the year.

This new arrangement marks a shift from previous funding models, as PBS and the Corporation for Public Broadcasting will provide financial support, unlike during the HBO years when PBS aired the show for free.

Founded in 1968, Sesame Workshop remains committed to its mission of helping children grow 'smarter, stronger, and kinder,' even amidst evolving media landscapes.

The deal comes after a year-long search for a new distribution partner following the end of the previous agreement with Warner Bros. Discovery, which raised concerns about the show's future.

CEO Sherrie Rollins Westin described the layoffs as painful but necessary, emphasizing that personnel costs are the largest expense for the organization.

The new season will feature revamped 11-minute episodes, interactive segments, and the return of beloved formats like Elmo’s World and Cookie Monster’s Foodie Truck.

The collaboration with Netflix is seen as a vital step in maintaining the legacy of 'Sesame Street,' ensuring that it continues to provide valuable educational content to children.

Despite these challenges, a spokesperson for Sesame Workshop assured that 'Sesame Street' has a bright future and will continue to reach children for generations to come.

Viewers can expect fresh format changes, including characters speaking directly to the audience and enhanced visual effects, designed to engage children more effectively.

While the financial terms of the Netflix deal have not been disclosed, experts suggest it may generate less revenue than the previous HBO partnership but could attract a larger audience.

Since its debut in 1969, 'Sesame Street' has become one of the longest-running children's shows in American history, recognized for its educational impact and cultural significance.