In a massive win for the streaming giant, Netflix has officially secured the feature film rights to the iconic children’s educational program Sesame Street following a fierce, year-long bidding war against major Hollywood studios.
This blockbuster acquisition comes as a major consolidation move, effectively bringing the entire Sesame Street universe under one roof, since Netflix had already locked down the television broadcast rights to the franchise back in May 2025.
To bring the beloved Muppets to the big screen, Netflix is partnering with Rideback, the high-profile production company led by Jonathan Eirich and Michael Lofaso, which is best known for driving billion-dollar live-action hits like Aladdin and Lilo & Stitch. Sesame Workshop, the nonprofit organization behind the legendary series, will also remain closely involved in a producing capacity.
The road to acquiring the Sesame Street rights was anything but a walk in the park. Universal and Warner Bros. were both heavily in the mix early on. While Warner Bros. dropped out ahead of schedule amid internal corporate acquisition dramas, Universal mounted a serious challenge. Universal even lined up Everything Everywhere All at Once directors “The Daniels” (Daniel Kwan and Daniel Scheinert) alongside powerhouse producers Phil Lord and Chris Miller to back the project. Ultimately, however, Netflix’s pitch and structural advantage prevailed.
While the streaming network has successfully planted its flag on the property, no director or creative team has been officially attached to the project just yet. When it does arrive, this film will mark the third major theatrical outing for Big Bird, Elmo, and the rest of the neighborhood gang, following the classic 1985 release Follow That Bird and 1999’s The Adventures of Elmo in Grouchland.
