PBS.org Sesame Workshop's
Miranda Barry says: "The whole segment was a parody of CNN (called GNN) or the 'Grouch News Network.' Children who watch Sesame Street know that Oscar the Grouch is a contrarian. He lives in a trash can and loves everything 'yucky,' and 'disgustin.' For a Grouch, 'Trashy' is high praise! Not only would child-viewers be unlikely to connect 'Pox News' to Fox News, in the context of this scene, they would understand the characters to be saying that 'Pox News' is better than 'GNN.'"
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Earlier: Some see Pox News reference as a slam on Fox News
