If you want to understand what’s going on in the streaming business, go find Elmo and Cookie Monster.

Netflix’s recent deal to stream the upcoming season of “Sesame Street” is, on its own, a major step in the entertainment giant’s effort to become a go-to destination for preschooler programming. At the same time, it’s a useful way to understand one of the media industry’s other big stories of the last week — Warner Bros. Discovery’s re-rebranding of its streaming service back to HBO Max.

First, the deal itself.

Los Gatos, Calif.-based Netflix will begin streaming the beloved children’s show’s upcoming 56th season, along with 90 hours of older episodes, later this year. New “Sesame Street” episodes will continue to air in the U.S. on PBS’ stations and digital platforms, the nonprofit Sesame Workshop’s longtime TV partner (which could use a win amid Congress’ efforts to defund public broadcasting). Episodes will premiere the same day on PBS and Netflix.

The new season will be released in three batches, and will include some format changes and the return of popular segments such as “Elmo’s World” and “Cookie Monster’s Foodie Truck.” Episodes will now be built around one 11-minute story, reflecting the shorter attention spans of younger viewers. The partnership includes a new animated segment, “Tales from 123.” Additionally, Netflix will be able to develop “Sesame Street” video games.

Netflix is welcoming “Sesame Street” to its block after HBO parent company Warner Bros. Discovery opted not to re-up its deal for new episodes, citing a shift in corporate priorities during a period of harsh cost-cutting.

HBO — and by extension, the streaming service known until recently as Max — had been the home of “Sesame Street” for years. The company then called Time Warner inked its deal with Sesame Workshop a decade ago, before AT&T or David Zaslav and his Discovery empire entered the picture.

Having Big Bird appear on the exclusive and adult-skewing “Game of Thrones” network never made much sense, but the deal was a lifeline for Sesame Workshop and kept the show alive, though it raised concerns among parent groups.

After AT&T took over, WarnerMedia launched HBO Max, a much reviled rebranding that was meant to make room for more populist content, including “Friends” and “The Big Bang Theory.” It also allowed for more kids’ programming, such as shows from Cartoon Network and Hanna-Barbera, along with “Sesame Street.”

Then came Zaslav, who stripped HBO from the streamer’s name entirely, leaving it as just Max. Part of the justification of the change was that the name HBO, while well known and respected among fancy people in New York and L.A., was a turnoff for Middle America and those who might otherwise sign up to binge-watch “Dr. Pimple Popper” and Guy Fieri.

The executives were also convinced that the HBO brand, known for “The Sopranos” and “Sex and the City,” was a deterrent for parents.

This was the era when streaming services were trying to be everything to everyone, and were losing billions of dollars trying to catch up to Netflix. Few companies other than Walt Disney Co. and HBO had distinct brands that made sense to people outside corporate conference rooms.

The decision to excise the HBO moniker was widely derided at the time as flawed managerial thinking.

Larry Vincent, a professor at USC Marshall School of Business and former UTA chief branding officer, called it a “classic case of right question, wrong answer” that will go down alongside New Coke in the annals of marketing blunders.

The name HBO has historically stood for quality, to the point that when people try to describe Apple TV+’s boutique streaming strategy, they compare it to early HBO. Last week, in an effective mea culpa during the media business’ big upfront week of presentations for advertisers, the company said the service would be called HBO Max again.

“It just violated everything we know about how you build a premium brand,” Vincent said of the earlier rebrand. “HBO has been at this for 50 years. It connotes a certain level of quality…. What we see now is that this is a reset to going back to the default position, because they realized this was silly.”

The backpedaling move drew howls from social media, journalists and rivals. Even Max’s own X account joined in on the fun. Warner Bros. Discovery executives were bracing for whatever John Oliver would say Sunday night during his show, and the comedian — never shy about bashing his own bosses — did not disappoint.

The decision was an admission of a couple things: First, that trying to be an “everything store” for entertainment was foolhardy when Netflix and Amazon both serve that exact purpose; and second, that it was a mistake to shy away from the brand that makes the streaming offering special.

Casey Bloys, chairman of HBO and Max content, said in a statement that returning to the old name “clearly states our implicit promise to deliver content that is recognized as unique and, to steal a line we always said at HBO, worth paying for.”

As my colleague Stephen Battaglio recently pointed out, when media companies put out new streaming services these days, there’s a tendency to avoid the now-cliche plus sign and stick with the brand name consumers already understand.

For example, Disney’s new $30 a month ESPN flagship service is simply called ESPN (ESPN+ is already taken by a more limited service).

Under Bloys, HBO has continued its tradition of highly regarded original series, with recent examples including the latest seasons of “The White Lotus,” “The Last of Us” and “The Righteous Gemstones.”

The brand confusion is still real, though. I’ve spoken with agents and read publications that should know better that mistakenly think “Hacks” and “The Pitt” are HBO shows, when they’re actually Max originals. That may not be important to consumers, but within the industry and for artists, it matters.

As for preschool-focused programming such as “Sesame Street,” that’s no longer a priority for Warner Bros. Discovery’s streaming strategy. The company has said it now wants to focus on “stories for adults and families.”

People who want shows for their toddlers can find them almost anywhere, including for free on YouTube. Disney+, of course, has troves of kids content, including Australia’s acclaimed and much-watched “Bluey.”

And, increasingly, kids are tuning into Netflix, which is now the land of “Ms. Rachel,” “CoComelon” and “Blippi,” all of which rose to popularity on YouTube. Kids and family programming now accounts for 15% of the platform’s viewership, according to the company. Netflix also has “Peppa Pig” and “Hot Wheels Let’s Race.”

Suffice to say, if you want or need to turn your little ones into couch zombies for a while, Netflix has an increasingly crowded ZIP Code of shows for you.

Stuff we wrote

Numbers of the week

Cable’s consolidation continues with Friday’s announcement that Charter and Cox will merge in a $34.5-billion deal, uniting Southern California’s two major cable TV and internet providers.

The Charter-Cox combination would have 38 million customer homes in the nation, a larger footprint than longtime cable leader Comcast.

Of the many interesting aspects of the deal, this one is particularly relevant to Los Angeles residents — if approved by Charter shareholders and regulators, the merger would end one of the longest TV sports blackouts, my colleague Meg James reports.

Cox customers in Rancho Palos Verdes, Rolling Hills Estates and Orange County would finally have the Dodgers’ TV channel available in their lineups. For more than a decade, Cox has refused to carry SportsNet LA because of its high cost.

New Line Cinema’s horror franchise revival “Final Destination: Bloodlines” won the weekend box office with $51 million in the U.S. and Canada (more than $100 million globally), exceeding pre-release analyst estimates.

The horror genre’s power to draw moviegoers is undeniable. The marketing was clever (complete with morbid 3D billboards), and this series has built-in nostalgic value. The new grisly supernatural teen movie comes 14 years after the previous one, “Final Destination 5.” The audience response has been generally positive.

With a reported production budget of $50 million, this was a no-brainer, and another win for Warner Bros. chiefs Michael De Luca and Pam Abdy coming after “Minecraft” and “Sinners.” All eyes are now on James Gunn’s “Superman,” coming in July.

Finally …

Listen: “Chaise Longue” rock band Wet Leg has new music on the way. Here’s a preview.