• Home
  • Latest
  • Fortune 500
  • Finance
  • Tech
  • Leadership
  • Lifestyle
  • Rankings
  • Multimedia
TechMedia

Here’s why people are upset about Sesame Street moving to HBO

By
Mathew Ingram
Mathew Ingram
Down Arrow Button Icon
By
Mathew Ingram
Mathew Ingram
Down Arrow Button Icon
August 14, 2015, 1:54 PM ET

Twitter and other social-news outlets were filled with images of Big Bird and Oscar the Grouch on Thursday, and mashups that blended Sesame Street characters with those from Game of Thrones and True Detective. Why? Because news leaked out that the company behind the classic kids’ TV show has signed a deal with HBO to broadcast the next five seasons of Sesame Street exclusively on the subscription-only service.

For many critics, this deal seemed to symbolize the decline of publicly-supported broadcasting in a massively multi-channel universe. And the fact that it involves one of the world’s most beloved pieces of children’s programming made the news of the HBO arrangement even more painful for some. MIT researcher Chris Peterson said the deal damages “one of the last few truly good things in the world.”

https://twitter.com/peteyreplies/status/631956558461579264

“The show is a perfect example of the kind of thing that many of us feel instinctively ought to be some sort of public trust,” wrote Washington Post blogger Alyssa Rosenberg. The Parents Television Council criticized the deal because “In order to watch original episodes of the most iconic children’s program in television history, parents are now forced to fork over about $180 per year and subscribe to the most sexually explicit, most graphically violent television network in America.”

Some argue that Sesame Street is only doing what it has to do in order to survive. They point out that the show will still be available on PBS for free, although the episodes shown on the public broadcaster will be delayed by nine months. And many note that children — especially young ones — aren’t typically that concerned with the timeliness of the shows they watch, so there probably aren’t going to be howls of outrage from Sesame Street fans that someone else is getting early access.

Yo I hate privatization of public goods and culture as much as anyone, but Sesame Street watchers seem pretty unaffected by delayed episodes

— Parker Higgins (@xor) August 14, 2015

That time delay still rankles for many, however, because it means that a program which was specifically designed to help educate poor children will be unavailable to those children, until after it has already been watched by children of more wealthy families who can afford HBO subscriptions. “I get why Sesame Street did the HBO deal, but it makes me sad we’re privatizing a national treasure originally aimed at educating poor kids,” comedian Brian Gaar said on Twitter.

https://twitter.com/briangaar/status/631880308363694080

From HBO’s perspective, nabbing Sesame Street is a key part of the broadcaster’s plan to appeal to younger viewers. The competition for streaming-video audiences has been heating up, as services like Hulu and Netflix continue to beef up their offerings, and both have made inroads into the child market (Hulu has a deal with Nickelodeon and Netflix owns shows like “Reading Rainbow”). Although Sesame Street is far from the hot new thing, it has a fairly dependable audience.

All of this jockeying for power is just part of a much broader transformation of the TV universe, with streaming services like Netflix becoming far more dominant as the traditional cable bundle collapses, and new providers taking over the from traditional giants.

Where and how public media fits into this new landscape isn’t exactly clear. Although PBS was sanguine about the Sesame Street deal, the loss of such a landmark show has to hit hard, especially for an entity that like many public broadcasters is struggling to stay afloat. National Public Radio faces similar challenges: Some of its popular shows are losing listeners, and for a variety of reasons it has yet to capitalize on the growing interest in podcasts.

For Sesame Street in particular, the shift toward streaming has meant a sharp decline in DVD sales, one of the key sources of revenue for the program (which only got about 10% of its funding from PBS). In 2014, Sesame Workshop lost $11 million, and its operating revenues were down by close to 14%. That trend meant it essentially had no choice but to do the deal with HBO, according to Sesame Workshop CEO Jeff Dunn:

“The losses just kept getting bigger. It was like, ‘If we don’t find another way to replace this revenue stream, then we either have to shut the show down or…'”

In some ways, public media entities like NPR and PBS seem to fit perfectly with the on-demand market, where users and fans support the things they want to, rather than buying cable bundles. In fact, the public-media model is very similar to the idea of “crowdfunding” popularized by startups like Kickstarter and Indiegogo.

With so many competing media sources, however, there’s a chance that public broadcasters could get lost amid the noise, and/or have their flagship programs taken away by more well-funded entities like HBO as subscription streams take over from mainstream TV programming. That seems to be what’s at the heart of much of the Sesame Street backlash. And the ultimate solution to that problem is far from obvious.

About the Author
By Mathew Ingram
See full bioRight Arrow Button Icon

Latest in Tech

Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025

Most Popular

Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Rankings
  • 100 Best Companies
  • Fortune 500
  • Global 500
  • Fortune 500 Europe
  • Most Powerful Women
  • Future 50
  • World’s Most Admired Companies
  • See All Rankings
Sections
  • Finance
  • Leadership
  • Success
  • Tech
  • Asia
  • Europe
  • Environment
  • Fortune Crypto
  • Health
  • Retail
  • Lifestyle
  • Politics
  • Newsletters
  • Magazine
  • Features
  • Commentary
  • Mpw
  • CEO Initiative
  • Conferences
  • Personal Finance
  • Education
Customer Support
  • Frequently Asked Questions
  • Customer Service Portal
  • Privacy Policy
  • Terms Of Use
  • Single Issues For Purchase
  • International Print
Commercial Services
  • Advertising
  • Fortune Brand Studio
  • Fortune Analytics
  • Fortune Conferences
  • Business Development
About Us
  • About Us
  • Editorial Calendar
  • Press Center
  • Work At Fortune
  • Diversity And Inclusion
  • Terms And Conditions
  • Site Map
  • Facebook icon
  • Twitter icon
  • LinkedIn icon
  • Instagram icon
  • Pinterest icon

Most Popular

placeholder alt text
Big Tech
The Chan Zuckerberg Initiative cut 70 jobs as the Meta CEO’s philanthropy goes all in on mission to 'cure or prevent all disease'
By Sydney LakeFebruary 1, 2026
2 days ago
placeholder alt text
Economy
'I just don't have a good feeling about this': Top economist Claudia Sahm says the economy quietly shifted and everyone's now looking at the wrong alarm
By Eleanor PringleJanuary 31, 2026
3 days ago
placeholder alt text
Future of Work
Ford CEO has 5,000 open mechanic jobs with up to 6-figure salaries from the shortage of manually skilled workers: 'We are in trouble in our country'
By Marco Quiroz-GutierrezJanuary 31, 2026
2 days ago
placeholder alt text
Success
U.S. Olympic gold medalist went from $200,000-a-year sponsorship at 20 years old to $12-an-hour internship by 30
By Orianna Rosa RoyleFebruary 1, 2026
1 day ago
placeholder alt text
Success
Ryan Serhant starts work at 4:30 a.m.—he says most people don’t achieve their dreams because ‘what they really want is just to be lazy’
By Preston ForeJanuary 31, 2026
3 days ago
placeholder alt text
Economy
Musk’s fantasy for a future where work is optional just got more real: U.K. minister calls for universal basic income to cushion AI-related job losses
By Sasha RogelbergFebruary 1, 2026
2 days ago

© 2026 Fortune Media IP Limited. All Rights Reserved. Use of this site constitutes acceptance of our Terms of Use and Privacy Policy | CA Notice at Collection and Privacy Notice | Do Not Sell/Share My Personal Information
FORTUNE is a trademark of Fortune Media IP Limited, registered in the U.S. and other countries. FORTUNE may receive compensation for some links to products and services on this website. Offers may be subject to change without notice.


Latest in Tech

karp
AIMarkets
‘We are an n of 1’: Palantir hails ‘incredible’ earnings as stock rockets nearly 8% after hours
By Nick LichtenbergFebruary 2, 2026
3 hours ago
Man speaking with a blue background.
AIElon Musk
Elon Musk’s SpaceX buys xAI in stunning deal valued at $1.25 trillion ahead of looming IPO
By Amanda GerutFebruary 2, 2026
4 hours ago
altman
AIMarkets
Oracle said it was ‘highly confident in OpenAI’s ability to raise funds and meet its commitments.’ Cue the stock fall
By Eva RoytburgFebruary 2, 2026
4 hours ago
EnergyDevon Energy
Devon Energy CEO: ‘Stars align’ to acquire Coterra for nearly $26 billion as merger mania returns to the oilfield
By Jordan BlumFebruary 2, 2026
6 hours ago
schlicht
AIBots
Meet Matt Schlicht, the man behind AI’s latest Pandora’s box—a social network where AI agents talk to one another
By Nick LichtenbergFebruary 2, 2026
7 hours ago
Andy Jassy speaks onstage.
AILabor
If AI is roiling the job market, the data isn’t showing it, Yale Budget Lab report says, raising questions of ‘AI-washing’ to justify mass layoffs
By Sasha RogelbergFebruary 2, 2026
7 hours ago