The muppets embrace digital fully. I already mentioned the viral Rhapsody some time ago, since then many other videos were viral hits. They now have their own Facebook fan Page (440K fans, not bad) and a Twitter (20K followers) and a Youtube Channel.
The latest hit (180K views in 2 days) is a movie where they play with / educate the audience on Youtube comments and Digg. Nice product placement from the Diggers and the Google guys!