How the ABC missed out on $1 billion Bluey payday

The national broadcaster, which complains about a lack of funding, missed out on a slice of the lucrative merchandising pie of a brand that “will be around for 100 years”. See why.

Exclusive: Bumbling ABC executives missed out on a $1 billion Bluey payday after letting the BBC take on the merchandising rights for the Queensland-grown global juggernaut.

The national broadcaster, which complains about a lack of funding, did not even ask Bluey’s creator Joe Brumm for a slice of the merchandising pie of a brand that “will be around for 100 years”.

Outgoing ABC managing director David Anderson authorised a freedom of information request response that admitted the blunder.

A two-month search could find no documents that detailed any attempts from the ABC to sign a merchandise deal for Bluey, despite the ABC commissioning the show.

“The ABC was unable to identify any emails between the ABC and/or Joe Brumm, and/or Ludo Studios relating to merchandising deals for Bluey, created or sent between 1 October 2016 and 1 October 2018,” an ABC response to a freedom of information request said.

The taxpayer funded broadcaster’s lack of commercial acumen was in contrast to the BBC, which generated $4.2 billion in commercial revenue in the latest financial year.

Bumbling ABC executives missed out on a $1 billion Bluey payday after letting the BBC take on the merchandising rights for the Queensland-grown global juggernaut.

The BBC Studios financial report said: “Consumer products – particularly Bluey – were a highlight.”

Senator David Sharma has hit out at the Bluey mistake.

“The ABC receives over $1 billion in taxpayer funding per year. This is as much as the entire Department of Foreign Affairs and Trade receives to operate our global diplomatic network, so it’s not a small sum,” Senator Sharma said.

“It is crucial, to ensure public faith in the public broadcaster is maintained, that this money is spent both wisely and efficiently.

“The ABC should also be alive to opportunities to commercialise its content, and so help defray its costs to taxpayers.”

Senator David Sharma. Picture: Darren Leigh Roberts

Outgoing ABC managing director David Anderson. Picture: AAP Image/Lukas Coch

Children, and their parents, spent 43.9 billion minutes – or the equivalent of 83,523 years –watching Bluey in 2024, making it the most successful Australian show ever.

The Blue Heeler has become the most streamed show in the United States and was watched in 140 countries.

Bluey-themed toys and games are now available in 50 countries.

Disney announced in December that Bluey would become the first non-Disney owned brand to feature at its Disneyland theme park in California and Disney World in Florida.

Blueys World

They are also cashing in on the seas, with Bluey-themed cruises to run this year.

That’s ahead of the Bluey movie, written by Mr Brumm, which will “land in cinemas in 2027 under the Disney brand”.

At least some of the Bluey bonanza will land in the pockets of an Australian company, with Melbourne-based manufacturer Moose Toys signing a long-term deal to produce the show’s 338-item merchandise range.

Bluey is so big in the United States, a Bluey balloon featured in the 2024 Macy's Thanksgiving Day Parade in New York City. Picture: Michael Loccisano/Getty Images

Andrew Carley, director of global licensing at BBC Studios said when the deal was inked in May last year: “With global fandom for Bluey showing no sign of abating, I am delighted that our dynamic toy partnership with Moose Toys is set to continue for years to come.”

BBC Studios has supercharged the franchise, with Bunnings renaming six Australian stores as Hammerbarn in reference to an episode of the show.

Bluey cartoon clip

Bluey has also inspired a theme park land in the UK, with the cartoon dog becoming part of the Alton Towers Resort – the equivalent of Gold Coast’s Dreamworld.

Bluey merchandise includes plush toys, figurines, scooters, money boxes, bath toys, shampoo and conditioner, toddler beds, lifejackets, clothes and books.

Kylie Minogue and her sister Dannii have also become the voices of Bluey audio books.

Kylie Minogue became the voices of Bluey audio books. Picture: AFP

Dannii Minogue as also put her voice to the Bluey audio books. Picture: Mark Stewart

The ABC had the chance to bid for the rights for the show it “jointly commissioned with the BBC” but only the BBC makes money from its rivers of merchandising money.

Mr Anderson has admitted that he was in the meeting when Bluey was first pitched to the ABC.

“Hindsight is a wonderful thing. I remember sitting there with the Head of Children’s,” he said during an ABC radio interview.

“And it almost starts like a joke … a little known producer walks through the door and says ‘Have I got something for you!’ and it’s a 2D animation about a puppy.

“I was advised that we thought it would work. We thought it would bring joy to people. Who knew it was a unicorn from that moment?”

Shrewd BBC executives saw a hit on their hands, stumping up cash to invest in the series.

BBC Studios has a strong commercial bent, already making millions out of its Dr Who franchise and its nature documentaries.

Bluey and Bingo outside their house at Bluey's World in Brisbane.

The BBC has an ambitious target of increasing its commercial sales as it comes to terms with more competition from streaming services and reductions in licensing fees paid for by British viewers.

Mr Anderson will be replaced as managing director by experienced commercial TV boss Hugh Marks, who oversaw the $4 billion merger between Nine and Fairfax.

He leaves the ABC just a year after inking a new five-year contract.

Sam Hargrave and son Tommy, 2, with Sonia Selvester with their Bluey merchandise from Bluey’s World.

Marketing expert Mark Ritson said Bluey was set to become an iconic Australian brand, amid estimates it could be worth $1 billion.

“Bluey is perennial, she’s always six years old. There’s going to be a new generation of kids, a new audience who want the toys and the T-shirts,” Mr Ritson said.

“It’s ironic that Bluey is created by the ABC in partnership with the BBC but the ABC gets nothing out of it.

“Licensing is as close as you get to pure money. Once you sign a deal, you don’t have to make the frisbee or the T-shirt, it’s just cash, it’s pure margin.”

Fans outside Bluey’s World, an attraction in Brisbane that opened in November, said it was “crazy” the profits were going to the BBC.

“There has to be some money made with all this merch being sold. That’s crazy,” Nick said.

Originally published as How the ABC missed out on $1 billion Bluey payday