Netflix Secures 'Sesame Street' Movie Deal in Two-Way Bidding Competition

Netflix has claimed the film rights to Sesame Street, emerging victorious from a two-company bidding battle for the beloved children's property.

The streaming giant's acquisition of the movie rights comes after a year-long competition that initially involved three major studios. Universal, Warner Bros, and Netflix all pursued the project, though Warner Bros—which previously held the film rights—exited the bidding early. Universal's pursuit included Oscar-winning filmmakers The Daniels, known for Everything Everywhere All at Once, as producers on their proposal.

Production company Rideback will helm the movie adaptation. The company had already been collaborating with Sesame Workshop on an animated initiative and earned their backing for the Netflix film deal.

Jonathan Eirich and Michael Lofaso from Rideback are set to produce the Sesame Street movie. The production company brings extensive experience in high-profile adaptations and originals for Netflix and other platforms, with credits including the live-action Avatar: The Last Airbender series, Death Note, The Two Popes, live-action Lilo & Stitch, The Lego Movies, live-action Aladdin, It, Sherlock Holmes, Gangster Squad, and Haunted Mansion, along with television series including Walker, Walker: Independence, Lethal Weapon, and Frequency.

This movie deal represents another chapter in Netflix's expanded relationship with Sesame Street. Last year, the platform rescued the beloved television program after Warner Bros Discovery declined to renew its licensing agreement. The show's first season launched on Netflix in November 2025, with the second season arriving in March 2026.