Editing Sesame Workshop (section)

== History ==

=== Background ===
During the late 1960s, 97% of all American households owned a television set, and preschool children watched an average of 27 hours of television per week.<ref>{{cite journal | last = Hellman | first = Peter | title = Street Smart: How Big Bird & Company Do It | journal = New York Magazine | volume = 20 | issue = 46 | page = 52 | date = 23 November 1987 | url = https://books.google.com/books?id=KOUCAAAAMBAJ&q=sesame%20street&pg=PA48 | issn = 0028-7369 | access-date = 18 November 2019}}</ref> Early childhood educational research at the time had shown that when children were prepared to succeed in school, they earned better grades and learned more effectively. Children from low-income families, however, had fewer resources than children from higher-income families to prepare them for school. Research had shown that children from low-income, minority backgrounds tested "substantially lower"<ref>Palmer & Fisch in Fisch & Truglio, p. 5</ref> than middle-class children in school-related skills, and that they continued to have educational deficits throughout school.<ref>{{cite book | last = Lesser | first = Gerald S. | author2 = Joel Schneider | editor = Shalom M. Fisch | editor2 = Rosemarie T. Truglio | title = "G" is for Growing: Thirty Years of Research on Children and Sesame Street | chapter-url = https://archive.org/details/gisforgrowingthi00shal/page/26 | chapter-url-access = registration | publisher = Lawrence Erlbaum Publishers | year = 2001 | location = Mahweh, New Jersey | page = [https://archive.org/details/gisforgrowingthi00shal/page/26 26] | isbn = 0-8058-3395-1 | chapter = Creation and Evolution of the ''Sesame Street'' Curriculum }}</ref> The topic of developmental psychology had grown during this period, and scientists were beginning to understand that changes of early childhood education could increase children's cognitive growth.

[[File:Joan Ganz Cooney.JPG|thumb|upright|alt=Black and white photo of a smiling woman about fifty years of age and wearing a jacket and tied-up scarf|CTW Co-founder Joan Ganz Cooney, in 1985]]
[[File:Lloyd Morrisett and his birthday cupcakes.jpg|thumb|right|alt=White male in his 70s, wearing a dark blue sweater, to the left of a woman holding a tray of Cookie Monster cupcakes|Co-founder Lloyd Morrisett, in 2010]]
In the winter of 1966, [[Joan Ganz Cooney]] hosted what she called "a little dinner party"<ref name="interview-3">{{cite AV media | people =Shirley Wershba (host) | date =27 April 1998 | title ="Joan Ganz Cooney, Part 3" | medium = video clip | url = http://emmytvlegends.org/interviews/people/joan-ganz-cooney | access-date = 18 November 2019
 | publisher =Archive of American Television}}</ref> at her apartment near [[Gramercy Park]]. Attending were her husband Tim Cooney, her boss Lewis Freedman, and Lloyd and Mary Morrisett, whom the Cooneys knew socially.<ref>Davis, p. 12</ref> Cooney was a producer of documentary films at New York public television station WNDT (now [[WNET]]), and won an [[Emmy Award|Emmy]] for a documentary about poverty in America.<ref>O'Dell, p. 68</ref> [[Lloyd Morrisett]] was a vice-president at [[Carnegie Corporation of New York|Carnegie Corporation]], and was responsible for funding educational research, but had been frustrated in his efforts because they were unable to reach the large numbers of children in need of early education and intervention.<ref>Davis, p. 15</ref> Cooney was committed to using television to change society, and Morrisett was interested in using television to "reach greater numbers of needy kids".<ref>Davis, p. 61</ref> The conversation during the party, which according to writer Michael Davis was the start of a five-decade long professional relationship between Cooney and Morrisett, turned to the possibilities of using television to educate young children.<ref>Davis, p. 16</ref> A week later, Cooney and Freedman met with Morrisett at the office of Carnegie Corporation to discuss doing a feasibility study for creating an educational television program for preschoolers.<ref>Morrow, p. 47</ref> Cooney was chosen to perform the study.<ref name="interview-3"/>

In the summer of 1967, Cooney took a leave of absence from WNDT, and funded by Carnegie Corporation, traveled the U.S. and Canada interviewing experts in child development, education, and television. She reported her findings in a fifty-five-page document entitled "The Potential Uses of Television in Preschool Education".<ref>Davis, pp. 66–67</ref> The report described what the new series, which became ''[[Sesame Street]]'', would be like and proposed the creation of a company that managed its production, which eventually became known as the Children's Television Workshop (CTW).<ref name="interview-3"/>

=== Founding ===
For the next two years, Cooney and Morrisett researched and developed the new show, acquiring $8 million funding for ''Sesame Street'', and establishing the CTW.<ref>Morrow, p. 71</ref> Due to her professional experience, Cooney always assumed the show's natural network would be PBS. Morrisett was amenable to broadcast it by commercial stations, but all three major networks rejected the idea.  Davis, considering ''Sesame Street''{{'}}s licensing income years later, termed their decision "a billion-dollar blunder".<ref>Davis, p. 114</ref> Morrisett was responsible for fund acquisition, and was so successful at it that writer Lee D. Mitgang later said that it "defied conventional media wisdom".  Cooney was responsible for the show's creative development, and for hiring the production and research staff for the CTW.<ref>Davis, p. 105</ref>  The Carnegie Corporation provided their initial $1 million grant, and Morrisett, using his contacts, procured additional multimillion-dollar grants from the U.S. federal government, the [[Arthur Vining Davis Foundations]], the [[Corporation for Public Broadcasting]], and the [[Ford Foundation]].<ref>Davis, p. 8</ref>{{refn|group=note|Writer Lee D. Mitgang, in his book about Morrisett's involvement with the [[Markle Foundation]], reported, "The equally important role of Morrisett in ensuring ''Sesame Street's'' success and survival never received recognition approaching Cooney's public acclaim".<ref>Mitgang, p. xvi</ref>}}  Morrisett's friend Harold Howe, who was the [[United States Commissioner of Education|commissioner]] for the [[U.S. Department of Education]], promised $4 million, half of the new organization's budget.  The Carnegie Corporation donated an additional $1 million.<ref>Mitgang, pp. 16–17</ref>  Mitgang stated, "Had Morrisett been any less effective in lining up financial support, Cooney's report likely would have become just another long-forgotten foundation idea".<ref>Mitgang, p. 17</ref>  Funds gained from a combination of government agencies and private foundations protected them from the economic problems experienced by commercial networks, but caused difficulty for procuring future funding.<ref>Lesser, p. 17</ref>

Cooney's proposal included using in-house formative research that would inform and improve production, and independent summative evaluations to test the show's effect on its young viewers' learning.<ref>{{cite book | last = Fisch | first = Shalom M. | author2 = Lewis Bernstein | editor = Shalom M. Fisch | editor2 = Rosemarie T. Truglio | title = "G" is for Growing: Thirty Years of Research on Children and Sesame Street | publisher = Lawrence Erlbaum Publishers | year = 2001 | location = Mahweh, New Jersey | page = [https://archive.org/details/gisforgrowingthi00shal/page/40 40] | isbn = 0-8058-3395-1 | chapter = Formative Research Revealed: Methodological and Process Issues in Formative Research | chapter-url = https://archive.org/details/gisforgrowingthi00shal/page/40 }}</ref><ref>{{cite book | last = Mielke | first = Keith W. | author2 = Lewis Bernstein | editor = Shalom M. Fisch | editor2 = Rosemarie T. Truglio | title = "G" is for Growing: Thirty Years of Research on Children and Sesame Street | publisher = Lawrence Erlbaum Publishers | year = 2001 | location = Mahweh, New Jersey | page = [https://archive.org/details/gisforgrowingthi00shal/page/85 85] | isbn = 0-8058-3395-1 | chapter = A Review of Research on the Educational and Social Impact of Sesame Street | chapter-url = https://archive.org/details/gisforgrowingthi00shal/page/85 }}</ref>  In 1967, Morrisett recruited [[Harvard University]] professor [[Gerald S. Lesser]], whom he had met while they were both psychology students at [[Yale University|Yale]],<ref>Palmer & Fisch in Fisch & Truglio, p. 8</ref> to help develop and lead the Workshop's research department. In 1972, the Markle Foundation donated $72,000 to Harvard to form the Center for Research in Children's Television, which served as a research agency for the CTW.  Harvard produced about 20 major research studies about ''Sesame Street'' and its effect on young children.<ref>Mitgang, p. 45</ref>  Lesser also served as the first chairman of the Workshop's advisory board, a position he held until his retirement in 1997.<ref>{{cite news |title=Remembering Professor, Emeritus, Gerald Lesser |url=https://www.gse.harvard.edu/news/10/09/remembering-professor-emeritus-gerald-lesser |access-date=20 November 2019 |publisher=Harvard Graduate School of Education |date=24 September 2010 |archive-date=20 November 2019 |archive-url=https://web.archive.org/web/20191120220642/https://www.gse.harvard.edu/news/10/09/remembering-professor-emeritus-gerald-lesser |url-status=live }}</ref>  According to Lesser, the CTW's advisory board was unusual because instead of rubber-stamping the Workshop's decisions like most boards for other children's television shows, it contributed significantly to the series' design and implementation.<ref>Lesser, pp. 42–43</ref> Lesser reported in ''[[Children and Television: Lessons from Sesame Street]]'', his 1974 book about the beginnings of ''Sesame Street'' and the Children's Television Workshop, that about 8–10% of the Workshop's initial budget was spent on research.<ref>Lesser, p. 132</ref>

CTW's summative research was done by the Workshop's first research director, [[Edward L. Palmer]], whom they met at the curriculum seminars Lesser conducted in Boston in the summer of 1967. In the summer of 1968, Palmer began to create educational goals, define the Workshop's research activities, and hire his research team.<ref name="lesser-39">Lesser, p. 39</ref> Lesser and Palmer were the only scientists in the U.S. studying the interaction of children and television at the time.<ref>Davis, p. 144</ref> They were responsible for developing a system of planning, production, and evaluation, and the interaction between television producers and educators, later called the "CTW model".<ref>Morrow, p. 68</ref><ref>Cooney, Joan Ganz (1974). "Foreword", in Lesser, p. xvi</ref> Cooney observed of the CTW model: "From the beginning, we—the planners of the project—designed the show as an experimental research project with educational advisers, researchers, and television producers collaborating as equal partners".<ref>{{cite book |last1=Borgenicht |first1=David |title=Sesame Street Unpaved |date=1998 |publisher=Hyperion Publishing |location=New York |isbn=0-7868-6460-5 |page=[https://archive.org/details/sesamestreetunpa0000borg/page/9 9] |url=https://archive.org/details/sesamestreetunpa0000borg/page/9 }}</ref>  She described the collaboration as an "arranged marriage".<ref>{{cite book | last = Cooney | first = Joan Ganz | editor = Shalom M. Fisch | editor2 = Rosemarie T. Truglio | title = "G" is for Growing: Thirty Years of Research on Children and Sesame Street | publisher = Lawrence Erlbaum Publishers | year = 2001 | location = Mahweh, New Jersey | page = xi | isbn = 0-8058-3395-1 | chapter = Foreword | url = https://archive.org/details/gisforgrowingthi00shal }}</ref>

The CTW devoted 8% of its initial budget to outreach and publicity.<ref>Lesser, p. 169</ref> In what television historian Robert W. Morrow called "an extensive campaign"<ref>Morrow, p. 112</ref> that Lesser stated "would demand at least as much ingenuity as production and research",<ref name="lesser-39" /> the Workshop promoted the show with educators, the broadcast industry, and the show's target audience, which consisted of inner-city children and their families. They hired [[Evelyn Payne Davis]] from the [[Urban League]], whom Michael Davis called "remarkable, unsinkable, and indispensable",<ref>Davis, p. 154</ref> as the Workshop's first Vice President of Community Relations and manager of the Workshop's Community Educational Services (CES) division.<ref name="lesser-39" /> Bob Hatch was hired to publicize their new series, both before its premiere and to take advantage of the media attention concerning ''Sesame Street'' during its first year of production.<ref>Lesser, p. 40</ref>

According to Davis, despite her involvement with the project's initial research and development, Cooney's installment as CTW's executive director was questionable due to her lack of executive experience, untested financial management skills, and lack of experience with children's television and education. Davis also speculated that sexism was involved, stating, "Doubters also questioned whether a woman could gain the full confidence of a quorum of men from the federal government and two elite philanthropies, institutions whose wealth exceeded the gross national product of entire countries".<ref>Davis, p. 124</ref> At first, Cooney did not fight for the position. However she had the help of her husband and Morrisett, and the project's investors soon realized they could not begin without her. She was eventually named to the post in February 1968.  As one of the first female executives in American television, her appointment was termed "one of the most important television developments of the decade".<ref name="davis125126">Davis, pp. 125–126</ref> The formation of the Children Television Workshop was announced at a press conference at the [[Waldorf-Astoria Hotel]] in New York City on 20 May 1968.<ref>Davis, p. 127</ref>

After her appointment, Cooney hired Bob Davidson as her assistant; he was responsible for making agreements with approximately 180 public television stations to broadcast the new series.<ref>Lesser, p. 41</ref> She assembled a team of producers:<ref>{{cite book |last1=Finch |first1=Christopher |title=Jim Henson: The Works: the Art, the Magic, the Imagination |date=1993 |publisher=Random House |location=New York |isbn=978-0-679-41203-8 |page=[https://archive.org/details/jimhensonworksar0000finc/page/53 53] |url=https://archive.org/details/jimhensonworksar0000finc/page/53 }}</ref> [[Jon Stone]] was responsible for writing, casting, and format; [[David Connell (television producer)|David Connell]] assumed control of animation and volume production; and Samuel Gibbon served as the show's chief liaison between the production staff and the research team.<ref>Davis, p. 147</ref> Stone, Connell, and Gibbon had worked on another children's show, ''[[Captain Kangaroo]]'', together. Cooney later said about ''Sesame Street''{{'}}s original team of producers, "collectively, we were a genius".<ref>Gikow, p. 26</ref> CTW's first children's show, ''Sesame Street'', premiered on 10 November 1969.<ref>Davis, p. 192</ref> The CTW was not incorporated until 1970 because its creators wanted to see if the series was a success before they hired lawyers and accountants.<ref name="wershba-6">{{cite AV media | people =Shirley Wershba (host) | date =27 April 1998 | title ="Joan Ganz Cooney, Part 6" | medium = video clip | url = https://interviews.televisionacademy.com/interviews/joan-ganz-cooney#interview-clips | access-date = 20 November 2019 | publisher =Archive of American Television}}</ref> Morrisett served as the first chairperson of CTW's board of trustees, a job he had for 28 years.<ref>Mitgang, p. 39</ref>

=== Early years ===
During the second season of ''Sesame Street'', to capitalize on the momentum the Workshop was enjoying and the attention it received from the press, the Workshop created its second series, ''[[The Electric Company]]'', in 1971. Morrisett used the same fund-acquisition techniques as he had used for ''Sesame Street''.<ref>Davis, p. 216</ref> ''The Electric Company'' stopped production in 1977, but continued in reruns until 1985; it eventually became one of the most widely used TV shows in American classrooms<ref name="wershba-6" /><ref name="odell-75">O'Dell, p. 75</ref> and was [[The Electric Company (2009 TV series)|revived in 2009]].<ref>{{cite news |last1=Davis |first1=Michael |title=PBS Revives a Show That Shines a Light on Reading |url=https://www.nytimes.com/2008/05/12/arts/television/12elec.html?_r=2&sq=The%20Electric%20Company%20revival&st=cse&oref=slogin&scp=1&pagewanted=all |access-date=20 November 2019 |work=The New York Times |date=12 May 2008 |archive-date=3 April 2019 |archive-url=https://web.archive.org/web/20190403010236/https://www.nytimes.com/2008/05/12/arts/television/12elec.html?_r=2&sq=The%20Electric%20Company%20revival&st=cse&oref=slogin&scp=1&pagewanted=all |url-status=live }}</ref>  Starting in the early 1970s, the Workshop ventured into adult programming, but found that it was difficult to make their programs accessible to all socio-economic groups.<ref name="wershba-5"/>  In 1971, it produced a medical program for adults termed ''Feelin' Good'', hosted by [[Dick Cavett]], which was broadcast on public television until 1974. According to writer Cary O'Dell, the show "lacked a clear direction and never found a large audience".<ref>O'Dell, p. 74</ref> In 1977, the Workshop broadcast an adult drama called ''Best of Families'', which was set in New York City around the turn of the 20th century. However, it lasted for only six or seven episodes and helped the Workshop decide to emphasize children's programs only.<ref name="wershba-5">{{cite AV media | people =Shirley Wershba (host) | date =27 April 1998 | title ="Joan Ganz Cooney, Part 5" | medium = video clip | url = https://interviews.televisionacademy.com/interviews/joan-ganz-cooney#interview-clips | access-date = 20 November 2019 | publisher =Archive of American Television}}</ref>

[[File:CTW (1983).svg|thumb|The Children's Television Workshop logo from 1983 to 1997.]]
Throughout the 1970s, the CTW's main non-television efforts changed from promotion to the development of educational materials for preschool settings.<ref>Yotive and Fisch, pp. 181–182</ref> Early efforts included mobile viewing units that broadcast the show in the inner cities, in [[Appalachia]], in [[Native Americans in the United States|Native American]] communities, and in [[migrant worker]] camps.<ref>Gikow, pp. 282–283</ref> In the early 1980s, the CTW created the Preschool Education Program (PEP), whose goal was to assist preschools, by combining television viewing, books, hands-on activities, and other media, in using the series as an educational resource.<ref>Yotive and Fisch, pp. 182–183</ref> The Workshop also provided materials to non-English speaking children and adults. Starting in 2006, the Workshop expanded its programs by creating a series of PBS specials and DVDs largely concerning how military deployment affects the families of soldiers.<ref>Gikow, pp. 280–281</ref> Other efforts by the Workshop concerned families of prisoners, health and wellness, and safety.<ref>Gikow, pp. 286–293</ref>

According to Cooney and O'Dell, the 1980s were a problematic period for the Workshop.<ref name="odell-75" /><ref name="wershba-7">{{cite AV media | people =Shirley Wershba (host) | date =27 April 1998 | title ="Joan Ganz Cooney, Part 7" | medium = video clip | url = https://interviews.televisionacademy.com/interviews/joan-ganz-cooney#interview-clips | access-date = 20 November 2019 | publisher =Archive of American Television}}</ref> A series of poor investments in video games, motion picture production, theme parks, and other business ventures hurt the organization financially.<ref name="odell-75" /> Cooney brought in Bill Whaley during the late 1970s to work on their licensing agreements, but he was unable to compensate for the CTW's losses until 1986, when licensing revenues stabilized and its portfolio investments increased.<ref name="odell-75" /><ref name="wershba-7" /> Despite financial troubles, the Workshop continued to produce new shows throughout the decade. ''[[3-2-1 Contact]]'' premiered in 1980 and ran for seven seasons. The CTW found that finding funding for this series and other science-oriented series like ''[[Square One Television]]'', which was broadcast from 1987 to 1992, was easy because the [[National Science Foundation]] and other foundations were interested in funding science education.<ref name="wershba-5" /><ref name="wershba-9">{{cite AV media | people =Shirley Wershba (host) | date =27 April 1998 | title ="Joan Ganz Cooney, Part 9" | medium = video clip | url = https://interviews.televisionacademy.com/interviews/joan-ganz-cooney#interview-clips | access-date = 20 November 2019 | publisher =Archive of American Television}}</ref>

=== Later years ===
Cooney stepped down as chairman and chief executive officer of the CTW in 1990, when she was replaced by David Britt, who was her "chief lieutenant in the executive ranks through the mid-1990s"<ref>Davis, p. 260</ref> and whom Cooney termed her "right-hand for many years".<ref name="wershba-9" /> Britt had worked for her at the CTW since 1975 and had served as its president and chief operating officer since 1988. At that time, Cooney became chairman of the Workshop's executive board, which managed its businesses and licensing, and became more involved with the organization's creative efforts.<ref>{{cite news |last1=Carter |first1=Bill |title=Children's TV Workshop Head to Step Down |url=https://www.nytimes.com/1990/07/31/arts/children-s-tv-workshop-head-to-step-down.html |access-date=21 November 2019 |work=The New York Times |date=31 July 1990 |archive-date=27 November 2019 |archive-url=https://web.archive.org/web/20191127191408/https://www.nytimes.com/1990/07/31/arts/children-s-tv-workshop-head-to-step-down.html |url-status=live }}</ref>  The Workshop had a reorganization in 1995, and dismissed about 12 percent of its staff.<ref>O'Dell, p. 76</ref> In 1998, for the first time in the series' history, they accepted funds from corporations for ''Sesame Street'' and its other programs,<ref>{{cite news |last1=Brooke |first1=Jill |title='Sesame Street' takes a bow to 30 animated years |url=http://www.cnn.com/SHOWBIZ/TV/9811/13/sesame.street/ |archive-url=https://web.archive.org/web/19990128192944/http://www.cnn.com/SHOWBIZ/TV/9811/13/sesame.street/ |url-status=dead |archive-date=28 January 1999 |access-date=21 November 2019 |work=CNN.com |date=13 November 1998}}</ref> a policy criticized by consumer advocate [[Ralph Nader]].  The Workshop defended the acceptance of corporate sponsorship, stating that it compensated for a decrease of government subsidies.<ref>{{cite news |last1=Frankel |first1=Daniel |title=Nader Says "Sesame Street" Sells Out |url=https://www.eonline.com/news/37115/nader-says-sesame-street-sells-out |access-date=21 November 2019 |work=E! News |date=7 October 1998 |archive-date=7 April 2019 |archive-url=https://web.archive.org/web/20190407063512/https://www.eonline.com/news/37115/nader-says-sesame-street-sells-out |url-status=live }}</ref>

Also in 1998, the CTW invested $25 million in an educational cable channel called [[Noggin (TV channel)|Noggin]].<ref>{{cite news |last1=Kirchdoerffer |first1=Ed |title=CTW and Nick put heads together to create Noggin |url=http://kidscreen.com/1998/06/01/22207-19980601/ |access-date=21 November 2019 |work=Kidscreen.com |date=1 June 1998 |archive-date=21 November 2019 |archive-url=https://web.archive.org/web/20191121213359/http://kidscreen.com/1998/06/01/22207-19980601/ |url-status=live }}</ref> Noggin was a joint venture between the CTW and [[Viacom (1952–2005)|Viacom]]'s [[MTV Networks]],<ref>{{cite web|title=The-N.com Terms & Conditions|url=http://www.the-n.com/footerPage.php?ipv_sectionID=46&ipv_articleID=52|archive-url=https://web.archive.org/web/20020609152931/http://www.the-n.com/footerPage.php?ipv_sectionID=46&ipv_articleID=52|archive-date=June 9, 2002|work=Noggin LLC|quote=This Site at THE-N.COM is fully controlled and operated by Noggin LLC, a joint venture of MTV Networks, a division of Viacom International, Inc., and Sesame Workshop.}}</ref> and launched on February 2, 1999.<ref>{{cite web |url=http://www.nydailynews.com/archives/entertainment/lucky-children-start-noggin-article-1.825516 |title=A Lucky Few Children Get to Start Using Their Noggin|last=Bianculli|first=David |publisher=[[NY Daily News]] |date=February 2, 1999 |archive-url=https://web.archive.org/web/20151102175438/http://www.nydailynews.com/archives/entertainment/lucky-children-start-noggin-article-1.825516|archive-date=November 2, 2015|url-status=live}}</ref> [[Gary Knell]] explained that creating a new channel allowed the CTW to more easily "ensure that our programming gets out there."<ref>{{Cite magazine|url=https://ew.com/article/1998/11/20/can-elmo-get-along-rugrats/|title=Can Elmo get along with the Rugrats?|first=Joe|last=Flint|date=November 20, 1998|magazine=[[Entertainment Weekly]]}}</ref> While the Workshop would eventually produce various new shows for Noggin, the channel's early lineup consisted mostly of older shows from the CTW's library.<ref>{{Cite web|url=https://variety.com/1998/tv/news/mtv-uses-nick-s-noggin-as-new-net-1117470274/|title=MTV uses Nick's Noggin as new net|first=Richard|last=Katz|date=April 29, 1998|work=[[Variety (magazine)|Variety]]}}</ref>

In 2000, profits earned from the Noggin deal, along with the revenue caused partly by the "Tickle Me Elmo" craze, enabled the CTW to purchase [[The Jim Henson Company]]'s rights to the ''Sesame Street'' Muppets from the German media company [[EM.TV]], which had acquired Henson earlier that year. The transaction, valued at $180 million, also included a small interest Henson had in the Noggin cable channel.<ref>{{cite news |title=Sesame Workshop gains character control from EM.TV |url=https://muppetcentral.com/news/2000/120400.shtml |access-date=21 November 2019 |work=Muppet Central News |date=4 December 2000 |archive-date=17 August 2019 |archive-url=https://web.archive.org/web/20190817180444/https://muppetcentral.com/news/2000/120400.shtml |url-status=live }}</ref> Gary Knell stated, "Everyone, most especially the puppeteers, were thrilled that we were able to bring them home. It protected ''Sesame Street'' and allowed our international expansion to continue. Owning these characters has allowed us to maximize their potential. We are now in control of our own destiny".<ref>Davis, p. 348</ref>

The CTW changed its name to Sesame Workshop in June 2000, to better represent its non-television activities and interactive media.<ref>{{cite news |title=CTW Changes Name to Sesame Workshop |url=https://muppetcentral.com/news/2000/060500.shtml |archive-url=https://web.archive.org/web/20191121222001/https://muppetcentral.com/news/2000/060500.shtml |url-status=dead |archive-date=21 November 2019 |access-date=21 November 2019 |work=Muppet Central News |agency=Reuters |date=5 June 2000}}</ref>  Also in 2000, Gary Knell succeeded Britt as president and CEO of the Workshop; according to Davis, he "presided over an especially fertile period in the nonprofit's history".<ref name="davis-345">Davis, p. 345</ref> Under Knell's management, Sesame Workshop produced a variety of original shows for Noggin. The first was an interactive game show called ''[[Sponk!]]'', which was meant to model good collaboration and teamwork skills.<ref>{{Cite web|url=http://www.sesameworkshop.org/programs/sponk|title=Sponk!|date=June 8, 2011|website=SesameWorkshop.org|archive-url=https://web.archive.org/web/20110608011042/http://www.sesameworkshop.org/programs/sponk |archive-date=2011-06-08 }}</ref> Sesame Workshop also co-produced a ''Sesame Street'' spin-off, ''[[Play with Me Sesame]]'', for Noggin.<ref>{{cite web|url=https://kidscreen.com/2002/01/03/noggin-20020103/|title=Noggin has tween educon on the brain|work=[[Kidscreen]]|date=January 3, 2002|last=Connell|first=Mike}}</ref> In April 2002, Noggin premiered an overnight block for teenagers called [[The N]]. Sesame Workshop created its first-ever teen drama series, ''[[Out There (2003 TV series)|Out There]]'', for The N.<ref>{{cite web|url=https://www.nexttv.com/news/noggin-sesame-are-out-there-152276|title=Noggin, Sesame Are Out There|work=[[Multichannel News]]|last=Applebaum|first=Simon|date=February 19, 2003}}</ref>

In August 2002, Sesame Workshop sold its 50% share of Noggin to Viacom.<ref>{{cite news |title=Sesame Workshop sells its stake in Noggin cable network |url=http://current.org/files/archive-site/ch/ch0216noggin.html |date=September 2, 2002 |last=Everhart |first=Karen |work=Current.org |url-status=dead |archive-url=https://web.archive.org/web/20160402191348/http://current.org/files/archive-site/ch/ch0216noggin.html |archive-date=April 2, 2016 }}</ref><ref>{{cite news |title=Jeffrey D. Dunn Named Chief of Sesame Workshop |url=https://www.nytimes.com/2014/09/09/business/media/jeffrey-d-dunn-named-chief-of-sesame-workshop.html?_r=0 |date=September 8, 2014 |last=Jensen |first=Elizabeth |work=[[The New York Times]] }}</ref> The buyout was partially caused by SW's need to pay off debt.<ref>{{cite news |title=JV Is for VC: Sesame Street Creator Launches $10 Million Venture Fund for Child Development |url=https://www.edsurge.com/news/2016-02-01-v-is-for-vc-sesame-street-creator-launches-10-million-venture-fund-for-child-development |date=February 1, 2016 |last=Wan |first=Tony |work=[[EdSurge]]}}</ref> Sesame Workshop remained involved with the network's programming, as Viacom entered a multi-year production deal with Sesame Workshop shortly after the split and continued to broadcast the company's shows.<ref>{{cite news |title=Nickelodeon Buys Out Noggin; Enters Into Production Deal With Sesame Workshop |url=http://www.awn.com/news/nickelodeon-buys-out-noggin-enters-production-deal-sesame-workshop |last=Godfrey |first=Leigh |date=August 9, 2002 |work=[[Animation World Network]]}}</ref> The last collaboration between Noggin and Sesame Workshop was ''[[The Upside Down Show]]'', which premiered in 2006.<ref>{{cite web|url=https://www.tvweek.com/in-depth/2005/12/noggin-orders-upside-down/|title=Noggin Orders 'Upside Down'|work=[[TVWeek]]|date=December 6, 2005}}</ref>

Outside of Noggin, Knell was instrumental in the creation of the cable channel Sprout (now [[Universal Kids]], shutting down in March 2025) in 2005.<ref name="davis-345" /> Sprout (launched as PBS Kids Sprout) was founded as a partnership between the Workshop, [[Comcast]], [[PBS]], and [[HIT Entertainment]], all of whom contributed older programming from their archive libraries to the new network.<ref>{{cite news |title=Sprout channel to launch on Comcast September 1 |url=https://muppetcentral.com/news/2005/040405.shtml |access-date=21 November 2019 |work=Muppet Central News |date=4 April 2005 |archive-date=21 November 2019 |archive-url=https://web.archive.org/web/20191121223122/https://muppetcentral.com/news/2005/040405.shtml |url-status=live }}</ref>  After seven years as a partner, the Workshop divested its stake in Sprout to [[NBCUniversal]] in December 2012.<ref>{{cite news |last1=Jensen |first1=Elizabeth |title=NBCUniversal Takes Full Ownership of Sprout Cable Network |url=https://www.nytimes.com/2013/11/14/business/media/nbcuniversal-takes-ownership-of-sprout-cable-network.html |access-date=21 November 2019 |work=The New York Times |date=13 November 2013 |archive-date=27 November 2019 |archive-url=https://web.archive.org/web/20191127191405/https://www.nytimes.com/2013/11/14/business/media/nbcuniversal-takes-ownership-of-sprout-cable-network.html |url-status=live }}</ref>

In 2007, the Sesame Workshop founded [[The Joan Ganz Cooney Center]], an independent, non-profit organization that studies how to improve children's literacy by using and developing digital technologies "grounded in detailed educational curriculum", just as was done during the development of ''Sesame Street''.<ref>{{cite news |last1=Jensen |first1=Elizabeth |title=Institute Named for 'Sesame' Creator |url=https://www.nytimes.com/2007/12/06/arts/television/06sesa.html?_r=3 |access-date=21 November 2019 |work=The New York Times |date=6 December 2007 |archive-date=21 June 2020 |archive-url=https://web.archive.org/web/20200621064927/https://www.nytimes.com/2007/12/06/arts/television/06sesa.html?_r=3 |url-status=live }}</ref>

[[File:Sesame Workshop text logo.png|thumb|right|alt=Green wording spelling out "sesameworkshop" in lower case letters|Sesame Workshop wordmark used from 2007 to 2018.|272x272px]]

The 2008–2009 recession, which resulted in budget reductions for many nonprofit arts organizations, severely affected the organization; in 2009, it had to dismiss 20% of its staff.<ref>{{cite news |last1=Guernsey |first1=Lisa |title=How Sesame Street Changed the World |url=https://www.newsweek.com/how-sesame-street-changed-world-80067 |access-date=22 November 2019 |work=Newsweek |date=22 May 2009 |archive-date=10 December 2019 |archive-url=https://web.archive.org/web/20191210010326/https://www.newsweek.com/how-sesame-street-changed-world-80067 |url-status=live }}</ref>  Despite earning about $100 million from licensing revenue, royalties, and foundation and government funding in 2012, the Workshop's total revenue was down 15% and its operating loss doubled to $24.3 million. In 2013, it responded by dismissing 10% of its staff, saying that it was necessary to "strategically focus" their resources because of "today's rapidly changing digital environment".<ref>{{cite news |last1=Isidore |first1=Chris |title=Layoffs hit Sesame Street |url=https://money.cnn.com/2013/06/26/news/companies/sesame-street-layoff/ |access-date=22 November 2019 |work=CNN Money. |date=26 June 2013 |archive-date=23 November 2019 |archive-url=https://web.archive.org/web/20191123005027/https://money.cnn.com/2013/06/26/news/companies/sesame-street-layoff/ |url-status=live }}</ref>  In 2011, Knell left Sesame Workshop to become the chief executive of [[NPR|National Public Radio]] (NPR).<ref>{{cite news |last1=Kahana |first1=Menahem |title=Gary Knell named chief of NPR |url=https://usatoday30.usatoday.com/money/media/story/2011-10-02/npr-new-ceo/50637472/1 |access-date=22 November 2019 |work=USA Today |date=2 October 2011 |archive-date=5 March 2016 |archive-url=https://web.archive.org/web/20160305064833/http://www.usatoday.com/money/media/story/2011-10-02/npr-new-ceo/50637472/1 |url-status=live }}</ref> [[H. Melvin Ming]], who had been the organization's chief financial officer since 1999 and chief operating officer since 2002, was named as his replacement.<ref>{{cite press release |last=Westin |first= Sherrie |date= 3 October 2011 |title= Sesame Workshop Appoints H. Melvin Ming as President and CEO |url=http://www.sesameworkshop.org/newsandevents/pressreleaes/mel_ming_ceo |archive-url=https://web.archive.org/web/20111226173204/http://www.sesameworkshop.org/newsandevents/pressreleaes/mel_ming_ceo |url-status=dead |archive-date=26 December 2011 |location= New York |publisher= Sesame Workshop |access-date= 22 November 2019}}</ref> In 2014, H. Melvin Ming retired and was succeeded by former HIT Entertainment and Nickelodeon executive Jeffery D. Dunn. Dunn's appointment was the first time someone not affiliated with CTW or Sesame Workshop became its manager, although he had associations with the organization previously.<ref>{{cite news|last1=Jensen|first1=Elizabeth|title=Jeffrey D. Dunn Named Chief of Sesame Workshop|url=https://www.nytimes.com/2014/09/09/business/media/jeffrey-d-dunn-named-chief-of-sesame-workshop.html?_r=1|access-date=22 November 2019|work=The New York Times|date=8 September 2014|archive-date=8 March 2021|archive-url=https://web.archive.org/web/20210308233517/https://www.nytimes.com/2014/09/09/business/media/jeffrey-d-dunn-named-chief-of-sesame-workshop.html?_r=1|url-status=live}}</ref> In 2021, Dunn retired. It was replaced by [[Sherrie Rollins Westin]], who had served as president of SW's Social Impact and Philanthropy Division for six years.<ref>{{cite press release |last1=Fishman |first1= Lizzie |last2=Greenberg| first2= Courtney |date= 27 October 2020 |title= Sesame Workshop Announces Leadership Transition, Effective January 1, 2021 |url= https://www.sesameworkshop.org/press-room/press-releases/sesame-workshop-announces-leadership-transition-effective-january-1-2021 |archive-url=https://web.archive.org/web/20210417015333/https://www.sesameworkshop.org/press-room/press-releases/sesame-workshop-announces-leadership-transition-effective-january-1-2021 |archive-date=17 April 2021 |location= New York |publisher= Sesame Workshop |access-date= 1 January 2022}}</ref>

In 2019, ''[[The Hollywood Reporter]]'' reported that Sesame Workshop's operating income was approximately $1.6 million, after the majority of its funds earned from grants, licensing deals, and royalties went back into its content, its total operating costs were over $100 million per year.  Operating costs included salaries, $6 million in rent for its [[Lincoln Center]] corporate offices, its production facilities in Queens, and the costs of producing content for its YouTube channels and other outlets.  The organization employed about 400 people, including "several highly skilled puppeteers".  Royalties and distribution fees, which accounted for $52.9 million in 2018, made up the Workshop's biggest revenue source.  Donations brought in $47.8 million, or 31 percent of its income.  Licensing revenue from games, toys, and clothing earned the organization $4.5 million.<ref name="guthrie2">{{cite news |last1=Guthrie |first1=Marisa |title=Where 'Sesame Street' Gets Its Funding — and How It Nearly Went Broke |url=https://www.hollywoodreporter.com/news/sesame-street-gets-funding-how-it-went-broke-1183032 |access-date=20 April 2019 |work=The Hollywood Reporter |date=6 February 2019 |archive-date=18 April 2019 |archive-url=https://web.archive.org/web/20190418223110/https://www.hollywoodreporter.com/news/sesame-street-gets-funding-how-it-went-broke-1183032 |url-status=live }}</ref>

On March 6, 2025, Sesame Workshop announced its plans to significantly downsize and restructure its operations in the wake of [[Warner Bros. Discovery]]'s decision not to renew its US distribution deal for ''Sesame Street'' as well as policy changes affecting the organization's federal funding.<ref>{{cite web|url=https://www.theguardian.com/tv-and-radio/2025/mar/06/sesame-street-workshop-layoffs-union|title=Sesame Street non-profit to be hit with layoffs after staff announce union|work=The Guardian|first=Anna|last=Betts|date=2025-03-06|access-date=2025-03-10}}</ref>