While many of the greatest theme park attractions of all time were original concepts, there’s no argument that today in the industry, IP is king. It’s not enough to have a great ride or show; you have to have a great franchise or brand to attach it to. Some companies, like Disney and Universal, have plenty of options to choose from. However, a recent lawsuit may result in SeaWorld losing a major IP for its parks, which could in turn make for a future opportunity for a company just getting into the themed entertainment space.
Sesame Workshop Is Suing SeaWorld To End Their Partnership
SeaWorld currently has the rights to Sesame Street through a licensing deal with its parent company, Sesame Workshop. Sesame Street characters can be found in SeaWorld parks, and the company also operates two Sesame Place theme parks, one in Philadelphia and another in San Diego. However, the relationship between the two has clearly been strained in recent years. Back in 2024, Sesame Workshop won a lawsuit over unpaid royalties to the tune of $11 million. Now the two sides are back in court again, as Sesame Workshop is looking to sever its deal with SeaWorld.
According to Yahoo, Sesame Workshop filed a suit in New York on March 12, arguing SeaWorld has failed to promote the Sesame Street brand, which is one of the terms of the current licensing agreement. It claims that SeaWorld’s use of Sesame Street characters poses an “imminent threat” to Sesame Workshop's brand, requiring the organization to seek termination of the deal, which has been in place for 45 years.
Even before the 2023 lawsuit, the relationship between the two was clearly in trouble. Following a viral video that was alleged to show a racist reaction on the part of a Sesame Place employee, Sesame Workshop released a statement in order to distance itself from the situation.
While it still may be some time before final determinations are made and a court decides who is owed what, it seems quite likely that the partnership between SeaWorld and Sesame Workshop is over. If that is the case, however, I wonder if there might be another company that wants to make a new deal for Sesame Street.
If Sesame Street Wants A New Theme Park Partner, Netflix Is In A Great Position
If Sesame Workshop feels SeaWorld has not adequately promoted its brand, it might go looking for a new partner in themed entertainment that is willing to do so. The first place to look would likely be the streaming platform that is already broadcasting its show. New episodes of Sesame Street are available with a Netflix subscription, and as it happens, Netflix has also recently entered the world of themed entertainment.
In 2025, two Netflix House locations were opened; one in Texas and one in Pennsylvania, and a third has already been announced for Las Vegas. They include themed experiences set to the likes of Wednesday Squid Game and Stranger Things. None of its offerings are currently directed toward a young audience, but if that’s a place Netflix wants to grow, there may be no better IP to attach to it than Sesame Street.
There’s certainly no guarantee that something like this will happen, and there’s no evidence that it’s something either side would even be interested in. However, it seems unlikely that the end of a deal with SeaWorld will be the end Sesame Street characters in themed experiences.
