Actually I think they gave up on the licensed version, which morphed into the "Children's Club", but I could be wrong. In any case, the US pays for it.
Excerpts taken from Palestinian Television
The Palestinian Authority created "The Children's Club - a Sesame Street like T.V. show . The following quotes are from children who have appeared as guests on "The Children's Club" during the most recent broadcasts.
The Children's Club, 29 January, 1998
Palestine! Amidst the shooting of the revolution, I turn to you with my blood and the blood of my brother and of the son of my neighbors. My heart will cleanse your image. Allah is great! Allah is great!
The Children's Club, 6 February, 1998
When I wander into the entrance of Jerusalem, I will turn into a suicide warrior in battledress! In battledress! In battledress! Thank you. ( Applause - 'Bravo! Bravo! Bravo!)
The Children's Club, 13 February 1998
I am the voice of the exalted martyr. I am the voice of the exalted martyr and his green fire. Oh, my homeland...And like my father I will live in the shadow of the heroes and echo his voice, with my blood, and his image will be upon my eyelids.
Each and every part of your soil I have drenched with all my blood. And we shall march as warriors of Jihad (Holy War). Oh, my exalted martyr, you are my example. Oh, my companion, you are beside me. Oh, my sister, sing constantly about my life as a suicide warrior, how we remain steadfast. Oh, my country, you are my soul. Oh, my dawn, you are my heartbeat.
The Children's Club, 20-24 February, 1998
My heartfelt conviction to launch a Jihad (Holy War). A Teacher's Poem - "The Shout", 26 February, 1998
Oh, to those who achieved eternal glory and to the lovers of exalted martyrdom Oh, steadfast leaders, we bless you with the most fitting tribute of all, for you have reached the highest summit, together with the righteous and the prophets. Do we say to you good-bye? No, instead we declare, see you again in heaven! For this is the meeting place, the loving faithful one.
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Other "highlights" of the "Children's Club":
Groups of children are gathered together, shouting for "Jihad against Israel."
One girl, who appears to be in a Palestinian school classroom, sings of donning "battledress" to "attack the Zionists."
A small girl chants the now-familiar ditty, "When I wander into Jerusalem, I will become a suicide bomber."
An adult narrator reads material in a Palestinian school pamphlet: "I have raised my children for jihad and on the principle that they never give up on their land."
One segment depicts a small boy on the street chanting, "Revolution until victory."
Another boy is shown in class proclaiming, "We will settle our claims with stones and bullets."
This is terrible. No wonder this children grow up with such hate. In America we can't put blood on our video games for kids, and here they chant about killing innocent people. It truly saddens me.