Times are tough on Sesame Street.
Sesame Workshop, the nonprofit responsible for Elmo, Big Bird, Cookie Monster and the rest of the stars of “Sesame Street,” is confronting what executives have described as a “perfect storm” of problems.
The organization is losing its lucrative contract with HBO, which has paid $30 million to $35 million a year for a decade for rights to the show. With Hollywood suddenly watching every penny, nothing nearly as rich is in the offing.
Then there is the Trump administration. Its cuts to the United States Agency for International Development have stripped Sesame Workshop of some valuable grants that the nonprofit did not anticipate abruptly losing. The administration’s attacks on public media could bring some further cuts.
What’s more, “Sesame Street” is at risk of getting lost in the shuffle of a deeply competitive and fast-changing children’s TV landscape. The show reliably ranks far behind shows like “Bluey” and “Cocomelon” in Nielsen’s streaming numbers — and YouTube is eating up even more of the attention.
Together, those forces have left the organization trying to figure out how to navigate the coming years, a crisis that the nonprofit says will require a “reset.”
Sesame Workshop cut about 20 percent of its staff, or nearly 100 people, a few weeks ago. Without the cost cuts, the organization would face a deficit of nearly $40 million next year, according to internal documents reviewed by The New York Times. Even with the cuts, it has had to draw $6 million from its investment fund for the first time in more than a decade to help cover some of the budget shortfalls.
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