• by Wayne Friedman , Staff Writer, April 1, 2010

Martha Stewart probably wants her own cable channel -- like what Oprah Winfrey is getting from Discovery Communications.

Who doesn't?

Unfortunately for Stewart, she is no Oprah -- not rating-wise. But she has a lot going for her, offering a large array of home arts programming.

From all this, Martha Stewart Living Omnimedia made a wide-ranging, mostly daytime, programming deal with Crown Media Holdings, the holding company of Hallmark Channel and Hallmark Movie Channel. Now reports suggest Stewart is thinking of bigger stuff - a channel of her own.

Let's look at the obvious: To do this, one of Crown Media's networks, probably Hallmark Movie Channel, would essentially have to be sold to MSLO. Unlike Discovery, Crown Media doesn't have a number of low-profile, under-performing networks to make deals around.

The value for Hallmark Channel, a full-fledged cable network, is pegged around $1 billion by some media analysts. That means Hallmark Movie Channel, in less than half of the homes subscribing to the Hallmark Channel -- around 40 million -- is worth roughly $400 million.

One might ask whether Martha Stewart Living Omnimedia has that kind of wherewithal for a full-fledged joint venture.

Hallmark executives have been clear -- at least to MediaPost -- of the company's current objective with Stewart. Ed Georger, executive vice president of advertising sales, said in a recent interview: "She will be a big part of our network. But this isn't the Martha Stewart Channel."

Perhaps a digital cable channel, then? On the other hand, who really wants that these days, considering the tiny viewership of these outlets of a million or so subscribers?

How about a Nielsen-rated programming block, like what Turner's Adult Swim has on the Cartoon network? That seems a more likely idea. Or perhaps a video-on-demand channel.

Put all this aside for the moment, and go back to marketing. TV executives would tell you that Hallmark needs something -- much more than movies -- to move into next phase of its growth. It doesn't have a signature prime-time show. Not what "The Daily Show with Jon Stewart" started and continues to do for Comedy Central. Not how "The Shield" accelerated FX.

Hallmark has said that it is aiming to launch its first original series in the near term.

All this becomes even more pressing when considering that Crown Media is essentially an independent cable network company, much smaller than the likes of a Disney-ABC Television, NBC Universal, or Viacom.

TV executives will tell you a successful TV series -- perhaps with a known name -- can be a rallying point for advertisers. It can become the marketing face of a growing network.

Right now, Hallmark needs a Stewart. Maybe a Martha.