Why was The Muppet Show cancelled?

The Muppet Show was cancelled in 1981 primarily due to declining ratings and increased competition from other television programs. Despite its popularity and cultural impact, the show's viewership diminished over its final seasons. Additionally, the rising production costs and changes in network programming priorities contributed to its cancellation. Jim Henson and his team ultimately decided to focus on other projects, including films and specials featuring the beloved Muppet characters.