Netflix May Invite the Daniels to Its ‘Sesame Street’ Movie

At a glance:

• Netflix is in talks with the Daniels (Daniel Kwan and Scheinert) to direct a new Sesame Street movie, reviving a project that previously stalled at Warner Bros.
• The 2015 Warner Bros. effort, which would have starred Anne Hathaway, collapsed due to scheduling conflicts and the pandemic.
• This would be Netflix’s first Sesame Street film since 1999’s Elmo in Grouchland, coming as the show has found new life on the streaming platform since 2025.

What happened

Netflix is reportedly in early discussions with acclaimed filmmaking duo the Daniels—known formally as Daniel Kwan and Scheinert—to helm a long-in-the-works Sesame Street movie musical. The project represents a fresh start for a concept that first emerged over a decade ago, when Warner Bros. attached directors and planned a big-screen adaptation with Anne Hathaway attached to star. That iteration ultimately faltered amid shifting schedules, director changes, and the industry-wide disruptions of the pandemic, leaving the property dormant until Netflix stepped in.

The Daniels, whose breakout hit Everything Everywhere All at Once earned tens of millions globally and cemented their status as go-to talents for quirky, high-energy narratives, are currently in advance talks for the Sesame Street assignment. Their next film, headlined by Matt Damon, Emma Stone, and Charles Melton, is already in production, but insiders say the Sesame Street movie could slot in afterward if both sides move forward.

This isn’t Netflix’s first foray into Sesame Street content. Since launching the show on its platform in 2025, the streamer has leaned into its educational and family-friendly appeal, integrating it into broader kids’ programming blocks. A theatrical release would mark the first time a Sesame Street film has hit cinemas under Netflix’s umbrella, and only the second ever made—following 1999’s Elmo in Grouchland, a direct-to-video release that never received a wide theatrical rollout.

Why it matters

A Sesame Street movie could position Netflix as a rare force in family entertainment, especially as traditional studios retreat from kid-focused musicals. The Muppets’ recent Disney+ revival proved there’s appetite for puppet-driven narratives when executed with care and star power. Meanwhile, the Daniels bring a unique blend of heart, humor, and visual inventiveness that aligns well with Sesame Street’s tone—balancing absurdity with genuine emotion, much like their work on Everything Everywhere.

For Sesame Workshop, the nonprofit behind Sesame Street, a Netflix partnership offers access to global distribution and marketing muscle that local or independent studios might lack. It also comes at a time when the brand is evolving: celebrity guest spots, viral Elmo moments, and even a running gag about Elmo’s betrayal of the New York Knicks have kept the franchise culturally relevant for adults and children alike.

If greenlit, the film would likely debut simultaneously in theaters and on Netflix, mirroring the hybrid strategy used for other Netflix originals. That approach could maximize reach while protecting the investment—a smart play for a property that’s never before been fully realized on the big screen.