In The Night Garden toy sales reached £10.8 million between August and December 2007, according to NPD figures.
The pre-school hit is now one of the fastest growing UK properties and has made more money than Disney's High School Musical, which made £10.6 million throughout 2007.
Other shows such as Doctor Who and Charlie & Lola have combined with ITNG to propel BBC Worldwide's total toy sales to £48.8 million for last year, giving it a total market share of 10.6 per cent.
BBC Worldwide's director of children's Gill Pritchard said: "2007 was a great year for us, boosted mainly by the runaway success of In The Night Garden.
"These figures are fantastic to see especially given the fact that we only launched product in summer - it's a brand that has really captured the imgainative consciousness of parents and pre-schoolers.
"Our focus now will be on developing the longevity of the ITNG brand. Teletubbies is still a huge hit for us ten years on so we want to ensure we're looking at a long-term strategy for Night Garden from the outset."
Last week, In The Night Garden Blanket Time Igglepiggle was named the Toy of the Year at the Toy Retailer's Association awards. In addition, Character Group picked up the Boys Collectable accolade for its Doctor Who figures.