• by David Goetzl  @dgoetzl, July 13, 2007

Benefiting from a wider distribution and advertisers' interest in family-friendly programming, the Hallmark Channel is expecting about an 11% volume gain (to some $100 million) when its upfront doors close.

If the smaller Hallmark Movie Channel is factored in, the increase goes to about 17% (to some $105 million).

Hallmark Channel, which has a principal target of women 25-to-54, sold about half its inventory and received CPM jumps in the high single digits and higher, doing most deals using the so-called C3 currency (commercial ratings covering three days of DVR viewing). The channel (the principal asset of Crown Media) has had success in extracting significantly higher scatter pricing versus upfront, and is banking on that trend continuing.

Recently, it has brought first-time advertisers on board such as Macy's, New York Life and some Hollywood studios in the scatter period. "We want to be active in that market," said Executive Vice President-Ad Sales Bill Abbott.

Abbott said the strong upfront was driven by advertiser appreciation for Hallmark's reach (approaching 85 million homes), family-friendly programming, growing ratings, high level of viewer retention during commercials (perhaps as much as 97%) and new CEO Henry Schleiff.

Schleiff, who previously transformed Court TV during an eight-year run there, is overseeing his first upfront at Hallmark.

"He's raised the level of visibility for the channel, and that makes a very big difference," Abbott said, adding that he helps make the network "top of mind." On Thursday, Schleiff said the network would produce some 30 original movies in 2008, its most ambitious original programming foray ever.

In general, Abbott also said the cable marketplace was stronger than anticipated and "picked up an intensity level that we haven't seen in several years."