Sesame Workshop Sues to End Longtime SeaWorld Partnership

The lawsuit could open up new opportunities for Sesame Street in theme parks.

Mar. 13, 2026 at 10:05pm

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Sesame Workshop, the nonprofit organization behind the beloved children's show Sesame Street, has filed a lawsuit against SeaWorld to terminate their 45-year licensing agreement. Sesame Workshop claims SeaWorld has failed to properly promote the Sesame Street brand, posing an "imminent threat" to the organization's intellectual property. The move comes after SeaWorld was previously ordered to pay $11 million in unpaid royalties to Sesame Workshop in 2024.

Why it matters

The end of the SeaWorld partnership could open up new opportunities for Sesame Street to be featured in theme parks and other branded experiences. As Netflix continues to expand into the world of location-based entertainment, the streaming giant may be an ideal new partner to bring Sesame Street to life for families.

The details

Sesame Workshop filed the lawsuit in New York, arguing that SeaWorld has not upheld its end of the licensing agreement to adequately promote the Sesame Street brand. This comes after a previous legal battle in 2024 where SeaWorld was ordered to pay $11 million in unpaid royalties to Sesame Workshop. The relationship between the two organizations has been strained, especially following a 2023 incident at Sesame Place in Philadelphia that went viral and prompted Sesame Workshop to distance itself from the situation.

  • In 2024, Sesame Workshop won a $11 million lawsuit against SeaWorld over unpaid royalties.
  • On March 12, 2026, Sesame Workshop filed a new lawsuit in New York to terminate its 45-year licensing agreement with SeaWorld.

The players

Sesame Workshop

The nonprofit organization that owns the intellectual property rights to the children's television series Sesame Street.

SeaWorld

The theme park company that has operated Sesame Street-themed attractions and Sesame Place theme parks under a licensing agreement with Sesame Workshop since 1978.

Netflix

The streaming platform that currently airs new episodes of Sesame Street, which could be a potential new partner for Sesame Street-themed entertainment experiences.

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What’s next

The court will need to decide whether to allow Sesame Workshop to terminate its licensing agreement with SeaWorld. If the partnership ends, Sesame Workshop may look to partner with other theme park operators, including potentially Netflix as it expands its location-based entertainment offerings.

The takeaway

The end of the long-standing Sesame Street-SeaWorld partnership could open up new opportunities for the beloved children's brand to be featured in theme parks and other immersive experiences, potentially through a deal with a streaming platform like Netflix that is making inroads in the location-based entertainment space.