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Warner Home Video to distribute Sesame Street

PHYSICAL: Studio gains DVD, Internet, VOD distribution rights

By Susanne Ault -- Video Business, 10/15/2009

Elmo's World: Let's Play Music DVD box
The deal kick's off with Elmo's World: Let's Play Music.

OCT. 15 | PHYSICAL: Sesame Street is being rerouted to travel through Warner Home Video.

The studio has snagged all home entertainment distribution rights to the 40-year-old educational franchise, spanning new releases and a catalog of about 120 titles, starting in January. The deal spans DVD, Internet distribution and cable/satellite video-on-demand in the U.S. and Canada.

The first title kicking off the agreement is Elmo’s World: Let’s Play Music, slated to bow in February.

Sesame Street has been distributed by Genius Products, which last month sold its key operations and distribution deals to Universal Music Group Distribution’s Vivendi Entertainment. Producer Sesame Workshop opted to find a new home, however.

The venerable children’s brand is on an upswing. Despite declining DVD sales industrywide, Sesame Workshop credited a 22% rise in 2008 distribution/royalty revenue to climbing DVD sales. The company ships more than 4 million DVD units annually to retailers in the U.S.

About 8 million viewers watch the Sesame Street TV show each week.

“We are one of the most stable home entertainment properties in an overall tumultuous industry,” said Scott Chambers, senior VP worldwide media distribution at Sesame Workshop. “This is something that retailers and consumers can continue to count on.”

Elmo, Big Bird and the rest of the gang will strengthen Warner Home Video’s already prominent position in non-theatrical kids programming. The studio currently distributes such brands as Dr. Seuss, Peanuts, Hot Wheels, Pokemon, American Girl and The Wiggles. Its animated kids properties include Scooby-Doo, Batman, Superman and other DC Comics characters.

Warner plans to release seven to 10 Sesame Street titles annually. The studio hopes to combine its Sesame Street releases with its existing kid/family brands to create more comprehensive programs for retailers.

“This is one of the top five non-theatrical properties, and what it does for us is that it firmly establishes us as number one in non-theatrical family brands,” said Jeff Brown, executive V, general manager of TV, family and animation at Warner. 

Sesame Street
gains serious distribution momentum in shifting from an independent supplier to a major studio.

“Warner Bros.’ unique combination of physical media distribution, digital distribution and videogames under one roof affords a unique opportunity for Sesame Workshop to continue its mission of educating children around the world,” Terry Fitzpatrick, executive VP of distribution at Sesame Workshop, said in a statement.

Upcoming release Sesame Street: 40 Years of Sunny Days will still be serviced by Vivendi when it streets on Nov. 10.

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