The Muppet Movie/WMG

Lew Lord didn't give Kermit and the gang a show, but instead, permission to make a full-on audition pitch to see if they actually got the talent.
The movie is mainly focused on the journey to the dream instead of actively achieving the dream itself. Kermit's goal is in response to a classified ad he saw from Hollywood about a casting call for frogs, and he says more than once that he, and all his friends, need to audition. The road to stardom in entertainment is among the rockiest professions in any field, yet when they do reach Hollywood, Lew Lord, a respected and acclaimed Hollywood executive chairman, doesn't even see them audition- he gives them the "Standard Rich and Famous" contract after Kermit's single plead and that's it! Rather than give them a show without being certain they're valuable, maybe he simply made them sign a contract to make an audition tape, and maybe that's what they're trying to film in the sound stage number at the end. The rest of their journey up to getting their variety show greenlit is not covered in the movie, but it's safe to say that their audition tape was a success.