Oh, if PBS tanked (and let's face it, someone would bail them out in the 11th hour if it were absolutely necessary) Sesame Street would still not be in trouble. However, it wouldn't likely come to network programming except maybe in specials or reruns. It would move to cable like Nick or possibly even begin its own Sesame network.
They could do it quite easily. Jim always liked cable for children’s programming. Shows aren't as beholden to ratings on cable...they really aren't. When a cable show gets axed it's because someone is gunning for it or it is actually so terrible that nobody wants any part of it. That would never happen to Sesame unless Elmo finally flipped and went all Scorsese in the street!
Sesame could easily thrive on basic cable or even pay cable and maybe even improve in terms of budget and expand content. I'm glad it is on PBS because the program was created to give latch-key kids a step up in education and it should always be available to that demographic (in new shows, not just videos or reruns).
Also if PBS ever lost Sesame Street they'd have a hard time getting donations. The landscape of television and media is changing so much and that's good. That also makes it more important than ever to have a free public broadcasting channel.
I don't believe PBS will ever truly go belly up, but I am disturbed (however tastefully done) about the increase of ads for McDonalds etc. Cringe...I'd rather Barney and the Tubbies help sell the network. Cringe again for emphasis.
The idea that Sesame Street is ever in trouble is a myth that's perpetuated by PBS as a scare tactic. Heck, 123 Sesame is more in jeopardy with that red dude at the helm than any outside force.
One frogboy's opinion.