More 'Bluey' is on the way — and the kids' show is now a $2 billion juggernaut

• "Bluey" fans are worried the series could end with its third-season finale on Sunday.
• The "Bluey" brand is worth an estimated $2 billion but faces some challenges going forward.
• The kids TV show ranked among the most-watched streaming series in America last year.

Fans of the children's TV sensation "Bluey" feared the season three finale in April would mark the end of their favorite show.

Those fears proved unfounded, but the show does face some challenges down the line.

"Bluey" is an Australian preschool show that features a family of Australian Cattle Dogs or "Blue Heelers": Bluey, her younger sister Bingo, and their parents, Bandit and Chilli.

The show has become wildly popular in the US, where it was the top children's show last year, and the second-most streamed series after "Suits," per Nielsen data.

That popularity was underlined by a recent event held by a Las Vegas restaurant that offered fans the chance to meet "Bluey" — except the character was played by a man in a onesie, or a "Temu 'Bluey' costume" as one disgruntled customer put it.

Relatable

The show has taken off because it's funny, has wide appeal, and tackles real issues that many families face. Episodes focus on how children learn about the world through play, and how parents can join in the fun and help their kids navigate challenges while also dealing with their own issues.

"Bluey is relatable to both parents and kids and uses humor and realistic situations in its storytelling," Yalda Uhls, the founder and CEO of the Center for Scholars & Storytellers at UCLA, told Business Insider.

"'Sesame Street' is similar in that parents don't mind watching that with young children."

The show's creator and writer is Joe Brumm, a father of two young girls. It's produced by Ludo Studio, its distributors include the commercial arm of Britain's BBC, and it's available on Disney+.

The latest episode centered on Bandit preparing Bluey and Bingo to move home, and concluded with the appearance of a foreboding "For Sale" sign on the lawn of their family home.

The season finale, titled "The Sign," is 28 minutes long compared with the usual seven minutes. The episodes's length and game-changing subject matter fueled speculation that "Bluey" might be coming to an end.

However, producer Sam Moor told BBC Radio 4 it was "not the end for 'Bluey'" and there were "many more surprises in store."

Twenty new "Bluey Minisodes" are on the way, per the show's blog. They're billed as a collection of funny and sweet moments with the Heeler family and feature some new characters alongside fan favorites including Unicorse, Nana and Bob Heeler.

The first batch of minisodes will air on ABC Australia in June, followed by Disney+, "Bluey" website and YouTube channel later this year.

Making money and growing up

"Bluey" has become a big business. One valuation expert told Bloomberg that the brand is worth an estimated $2 billion. Another source claimed Disney had explored acquiring the property.

Those behind "Bluey" have leveraged its immense popularity by licensing its characters. There's now endless amounts of merchandise — this father of a toddler already owns "Bluey" books and toys and has been eyeing a "Bluey"-themed doctor play set — if only he could trust the family dog not to chew the stethoscope.

Disney monetizes smash hits like "Frozen" by releasing sequels and spin-off TV shows, and by featuring characters like Elsa and Olaf across toys, books, clothing, video games, theme parks, cruises, and resorts.

Despite "Bluey" living on, it faces the challenge of capturing fresh viewers as existing ones move on.

"As with any show related to kids, the audience will grow up, and if it doesn't create storylines that hold the attention of a new audience, it may lose viewership," Uhls said.

The show's reliance on Brumm could also make it tricky to scale, and limit how much a buyer will pay for it. Too much success, too fast, might cause the show to lose its way.