From Muppet Wiki

Sesame Sings Karaoke is a video release of the main storyline in Sesame Street episode 4031, the Season 34 premiere.

In the story, Alan hosts a karaoke night at Hooper's Store. Baby Bear wants to sing a song with Telly, but Telly is too nervous to go on. However, when it's Baby Bear's turn, he gets too nervous, and Telly comes to his rescue.

Bob comes on-stage to sing "The People in Your Neighborhood", but as he sings, the karaoke machine breaks down. Bob and the cast realize that they can still sing without the karaoke machine, and the Muppets run to get instruments.

Segments

Many of the songs sung during karaoke night are interrcut with other versions of the songs, including "A New Way to Walk" (the version with Destiny's Child is included), "Let's Go Driving", and "The People in Your Neighborhood" (the version with Ben Stiller is included).