HBO has announced that it will be ending its 50-year partnership with Sesame Workshop, the non-profit organization behind Sesame Street, at the end of 2021. The $100 million deal, which was initially signed in 2010, is the longest-running corporate sponsorship in the history of television.
The deal has allowed Sesame Workshop to produce 130 episodes of Sesame Street each season, with 20 of those episodes airing on HBO, which is a major source of funding for the non-profit. The partnership has also helped to make the show accessible to a broader audience, reaching 100 million households in the United States and 180 countries around the world.
According to reports, the partnership between HBO and Sesame Workshop began to deteriorate in 2020, when the streaming service, HBO Max, was launched. As a result, the two parties were able to negotiate a buyout of the remaining two years of the deal, with HBO reportedly paying $180 million to end the partnership early.
The news has sent shockwaves through the entertainment industry, with many wondering what this means for the future of Sesame Street. While the exact plans are still unclear, it is likely that the show will find new ways to produce and distribute its content, possibly through a new partnership or by going directly to consumers.