The planned musical film based on 'Sesame Street' is moving from Warner Bros. to Netflix, marking a major shift in its development. Initially announced just before the pandemic, the project once featured Anne Hathaway and Chance the Rapper in starring roles, with Bo Burnham writing original songs and Jonathan Krisel directing. However, with Warner Bros. losing the rights, those plans have been reset. Krisel is no longer involved, and Hathaway's participation is uncertain. Netflix, which began streaming the classic PBS series last year, has now acquired the film rights and is expected to hire a new writer in the coming months.

The original story concept followed Big Bird and his friends as they were mysteriously transported to Manhattan, unable to return to Sesame Street. To save a history show host’s series from cancellation and prove their home exists, they team up to outwit an evil mayor trying to stop them. While the core premise may remain, the creative overhaul suggests a fresh take could be in store.

Rideback, the production company led by Jonathan Eirich and Michael Lofaso, will produce alongside Sesame Workshop. Previously known for the live-action 'Lilo & Stitch' remake, Rideback brings experience in reimagining beloved properties. The Daniels, known for 'Everything Everywhere All at Once,' were once in talks to produce under Universal, but Netflix's acquisition ends that possibility. With no official talent currently attached, the film is returning to early development stages.