The Walt Disney Company acquires ownership of the Muppets and Bear in the Big Blue House characters from The Jim Henson Company
From season 35 to season 51 of Sesame Street, Rosita no longer has wings

Television & Movies
- The Street We Live On airs in primetime on PBS, April 4
- Sesame Street Season 35 premieres on PBS, April 5
- Farscape: Peacekeeper Wars miniseries premieres on Sci Fi, October 17-18
- NBC pre-empts an afternoon showing of It's a Wonderful Life for a third airing of It's a Very Merry Muppet Christmas Movie, November 25
International Television & Movies
- Good Boy! released in Denmark, March 3
- Die Muppets Spielen Theater (Muppet Classic Theater) premiers in Germany, April 9
- Five Children and It, September 11
- Das Grösste Muppet-Weihnachtsspektakel aller Zeiten (It's A Very Merry Muppet Christmas Movie), German pay-TV premiere, November 25
- Sesame Street begins airing in Japan
- Sesame English and Il Mondo di Elmo begin airing in Italy
Appearances
- Bear on Hollywood Squares, January 12-16
- Miss Piggy and Kermit on Extra
- The Muppets and Jessica Simpson Pizza Hut commercial, February 1
- Sesame Street Live on The Today Show, February 4
- Kermit on Animal Planet's 50 Greatest Movie Animals, February 28
- Big Bird and Elmo on Extra, March 3
- Sesame Muppets appear on The West Wing, March 3
- The Count on Countdown with Keith Olbermann, April 3
- Lewis Bernstein, Mike Renzi, Zoe, Elmo, Cookie Monster, and Oscar the Grouch appeared on The Early Show, April 5
- Elmo on Hollywood Squares, April 12-16
- Kermit, Miss Piggy, and Pepe the King Prawn appear on The Nick and Jessica Variety Hour, April 11
- Miss Piggy in a Pizza Hut commercial, September
- Johnny Fiama, Sal Minella and Bear on The Jerry Lewis MDA Labor Day Telethon, September 6
- Kermit and Miss Piggy at the Emmy Red Carpet Coverage, September 19
- Elmo on The Tony Danza Show, October 11
- Kermit on 100 Greatest TV Characters, November 22-26
- Kermit, Miss Piggy, Fozzie Bear, Gonzo, Statler and Waldorf, and Penguins on Good Morning America, December 15
- Kermit, Gonzo, Fozzie and Animal on Saturday Night Live, December 18
- Kermit, Miss Piggy and Gonzo on Christmas at Walt Disney World, December 25
Live appearances
- Elmo appears at an exhibition game between the New York Yankees and the Yomiuri Giants at the Tokyo Dome, March 28
- Elephant, Elmo, Cookie Monster, Zoe, Rosita, Grover and Phoebe at the Hollywood Hits Broadway Benefit Gala, April 24
DVDs
- Sesame Street: Cookie Monster's Best Bites
- Sesame Street: Let's Eat!: Funny Food Songs
- Labyrinth Collector's Edition DVD Box Set
- Best of the Muppet Show: Bob Hope, Dom DeLuise, George Burns
- Big Bird in China
- Big Bird in Japan
- The Wubbulous World of Dr. Seuss: Cat's Adventure
- Best of the Muppet Show: Diana Ross, Brooke Shields, Rudolf Nureyev
- Sesame Street: Fiesta!
- Sesame Street: Sing, Hoot & Howl
- Sesame Street: What's the Name of That Song?
- Sesame Street: Learning About Letters
- Sesame Street: Learning About Numbers
- Bear in the Big Blue House: A Bear for All Seasons
- Fraggle Rock: Where It All Began (test market edition)
- Sesame Street Celebrates Around the World
- Sesame Street: The Street We Live On
- Sesame Street: Elmo's Magic Cookbook
- Sesame Street: A Magical Halloween Adventure
- Sesame Street: A Celebration of Me, Grover
- The StoryTeller: Greek Myths: The Complete Collection
- Sesame Street: Imagine That
- Sesame Street: Sing Along
- Fraggle Rock: Where It All Began (special edition)
Books
Albums
Action Figures
- Adventure Kermit Action Figure
- Animal Action Figure
- Backstage Playset
- Beauregard Action Figure
- Captain Smollett Action Figure
- Frog Scout Robin Action Figure
- Ghost of Sam Arrow Action Figure
- Jim Henson Action Figure
- Johnny Fiama Action Figure
- Koozebane Kermit Action Figure
- Lips Action Figure
- Marvin Suggs Action Figure
- Mega Gonzo Action Figure
- Mini Muppets
- Phil Van Neuter Action Figure
- Pops Action Figure
- Sam the Eagle Action Figure
- Santa Chef Action Figure
- Stepping Out Bunsen and Beaker Action Figures
- Stepping Out Fozzie Action Figure
- Super Beaker Action Figure
- Swedish Chef Action Figure
- Sweetums Action Figure
- Tuxedo Gonzo Action Figure
- Usher Scooter Action Figure
- Vaudeville Statler and Waldorf Action Figures
Christmas Ornaments
- Hallmark Keepsake Christmas Ornament, Kermit on Bike
Other Merchandise
- New Sababa Plush: Janice, Swedish Chef, Kermit and Animal, May
- MONOPOLY: Sesame Street 35th Anniversary Edition, June
- Sesame Street 35 Years Anniversary Game
On the Web
- New Henson.com launches, October 6
- Muppets.go.com launches, November 17
- Gonzo, Kermit, and Piggy appear on Disney Motion, December 22
Business
- The Walt Disney Company acquires ownership of the Muppets and Bear in the Big Blue House characters from The Jim Henson Company, February 17
- The Jim Henson Company and HIT Entertainment form a five-year distribution agreement for the Henson Family Showcase properties, April 1
- Sesame Workshop launches "Healthy Habits for Life", May 20
Attractions and Events
- Can You Tell Me How to Get to Sesame Street? exhibition at the Bay Area Discovery Museum (San Francisco, CA), May 8 - September 19
- Muppets, Music & Magic: Jim Henson's Legacy: Film Festival held at the Brooklyn Academy of Music in New York, November 20-21
Muppet Character Debuts
Parades
- The Tournament of Roses Parade features a Sesame Street float, January 1
- Kermit, Miss Piggy on Emmy Red Carpet, September 19
- Macy's Thanksgiving Day Parade features the Super Grover Balloon, Kermit Balloon, and a Sesame Street Float
- McDonald's Thanksgiving Parade features balloon versions of Bear with Tutter, Animal, Pepe, Bert, and Kermit
- 6abc Thanksgiving Day Parade features a balloon version of Cookie Monster
- Kermit, Piggy and Gonzo co-host the Walt Disney World Christmas Day Parade (filmed in November). A preview spot for The Muppets' Wizard of Oz is shown for the first time during the parade, December 25
People
- Don Reardon dies, January 11
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