• by Paul Gough , March 2, 2003

The Hallmark Channel’s advertising revenues doubled and its subscriber base has risen past 50 million in the United States following its first full year of business with the name change.

“We’ve firmly established the Hallmark brand in the U.S. as a family-friendly, high-quality compelling network,” said David Evans, president/CEO of Hallmark’s parent company, Crown Media Holdings. Evans said 2002 saw record ratings and after two months of 2003, the network was already ahead of its ratings targets.

Evans said Hallmark continued to refine its programming strategy, with a mix of original movies and miniseries along with an award-winning documentary series on adoption and acquired shows like Touched by an Angel and Dr. Quinn, Medicine Woman. Programming in the UK, where the Hallmark Channel is strong, includes Crossing Jordan and JAG.

“We have popular series with loyal audiences that continue to grow,” he said.

Original movies and miniseries have led the way to ratings growth. Last month, an original movie called Straight from the Heart delivered a 1.9 rating, the highest ratings in the network’s history. Also helping ratings was a holiday sweepstakes with Hallmark Gold Crown stores built around six original movies on The Hallmark Channel, which included print, TV and radio advertising. The movies delivered household ratings from 0.8 to 1.3.

Hallmark’s Western block has scored with audiences, delivering between a 0.8 and a 1 rating throughout Q4, increasing to 1.1-1.3 in January. The Rifleman, a Western starring Chuck Connors that ran from 1958 to 1963, earned a 1.6 rating.

“That would be a very respectable rating in primetime,” noted Evans.

Hallmark has acquired the rights to MASH, the classic 1970s CBS sitcom, and has begun airing some recent studio films, including Mighty Joe Young, Flubber and My Favorite Martian.

“The momentum continues to build in 2003,” he said.

The Hallmark Channel goes into the upfront season with 250 advertisers and its strongest ratings. Ad revenue rose domestically to $12.6 million. CFO William J. Aliber said the channel saw a scatter market of $5 million, with 10%-25% increases in CPM and 100 new clients in 2002. He said January and February finished ahead of schedule, with 95% of the first quarter sold or optioned. Q2 has about 80% committed.

Hallmark expects distribution to increase to close to 60 million subscribers by the end of the year. It’s being helped by an acceleration of an agreement with Time Warner Cable and the possibility of a long-term agreement with Comcast.