Since 1969, Sesame Street had given Jim Henson's creations exposure; however, Henson began to perceive that he was pigeonholed as a children's entertainer. He sought to create a program that could be enjoyed by young and old. Two specials were produced and aired that are considered pilots for The Muppet Show. Neither led to the sale of a prime-time network series. However, the prime-time access rule had just been enacted, which took the 7:30 to 8pm ET slot from the networks and turned it over to their affiliates. CBS suggested it would be interested in Henson's proposal as a syndicated series it could purchase for its owned-and-operated stations, to run one night a week in that time slot.
Lew Grade, head of the British commercial station ATV, offered a deal to Henson that would see his show produced at the ATV studios in Elstree, England. ATV would network the show to other ITV stations in the United Kingdom, and its distribution arm, ITC Entertainment, would sell the show in the United States and around the world. Henson put aside his misgivings about syndication and accepted.
At first, signing guests was a challenge and producers had to call on their personal contacts. The breakthrough was the appearance of the ballet dancer, Rudolf Nureyev. His appearance on such an unusual show generated such positive publicity that the series became one of the sought-after productions to appear in[citation needed]. The Muppet Show premiered in 1976 and finally, after five years and 120 episodes, it went off the air in 1981 because of Henson's desire to move on to other projects and changes in the structure of ATV and ITC Entertainment.