Netflix has won the feature film rights to Sesame Street, closing out a year-long battle between major studios. The deal puts an end to months of speculation over who would finally bring the iconic puppets to the big screen. Sesame Workshop took its time before settling on a partner it trusted with a legacy spanning more than five decades. The chase for these rights proved far from simple, and the full story is even more interesting.

While the long contest finally ended, the real story lies in who will actually bring this childhood favorite to the big screen.

Rideback has now been confirmed as the company set to produce the new Sesame Street movie, after Netflix edged out Universal Pictures in a contest that once included Warner Bros. The production house, known for the live-action hits Lilo and Stitch and Aladdin, had already been developing an animation project with Sesame Workshop before this deal came together. Jonathan Eirich and Michael Lofaso lead the company, and Sesame Workshop will also serve as producer.

Sesame Workshop signed with CAA in the fall to shop the rights, sparking interest from three studios. Universal Pictures emerged as a serious contender, backed by Daniel Kwan and Daniel Scheinert of Everything Everywhere All at Once fame, along with Phil Lord and Chris Miller. Warner Bros, which held the rights for nearly a decade without producing a film, exited early amid its own acquisition drama. Neither Universal team was set to direct.

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This fresh win builds on ground Netflix had already claimed, as Sesame Street found a new home months earlier.

Netflix already secured the television rights to Sesame Street back in May 2025, well before this movie deal came together. Season 56 premiered on Netflix on November 10, 2025, bringing back Elmo, Cookie Monster, Big Bird, and the rest of the gang alongside new episodes. The season also aired the same day on PBS and PBS Kids, keeping the show free and accessible for every viewer. This arrangement followed Warner Bros Discovery choosing not to renew its prior deal.

The Netflix library also includes ninety hours of past Sesame Street episodes, giving longtime fans a way to revisit old favorites alongside the new season. This steady presence on the platform made Netflix a natural fit once movie rights entered play. With Rideback now attached and Sesame Workshop on board as producer, Sesame Street finally has a clear path to the big screen at Netflix.

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What are your thoughts on Netflix landing the Sesame Street movie rights? Let us know in the comments.