At the start of the film, Rugby knows so little about Christmas that he thinks it's a one-time event and is surprised to learn that it's happening again. Yet in the songs he sings, he says "no tree ever stood so tall." This implies a knowledge of multiple Christmases. What?
By that point in the film he's learned that Christmas is an annual event and figures he needs to be down under the tree to play his role. (Also, he's indulging in enormous artistic license at that point, claiming a brass band was playing to herald his arrival and "banners unfurled.")
HOW THE FRACK DID THE HUB GET THE RIGHTS TO THIS?
The film is stiill owned by the Henson Company, as is Fraggle Rock. Being the Hub showed Fraggle Rock, this was probably part of the deal.