Using the Fox News (NWS-A) network as an example, Hallmark Channel CEO Henry Schleiff says that the two networks get just about the same amount prime-time viewership and the same demographic, yet Hallmark comes nowhere close to getting the types of subscription fees that Fox News commands.
Hallmark Channel CEO Henry Schleiff has changing that as one of his chief goals in bringing the network forward. Fox News recently received a increase per subscriber to 75 cents each, up from about 25 cents. In contrast, Hallmark only gets pennies for each subscriber. Schleiff says he wants Hallmark to be compensated in similar fashion.
The upside for the network is that it's growing at a healthy clip, up 30 percent over the last year. It is also in the top 10 among cable networks consistently in 
household ratings.
The major problem that Hallmark is fighting is that the median age for the network viewers is almost 60, and many are from less upscale counties, which makes not as targetable as other networks with similar demographics, but higher incomes.
With the attempt by Crown Media Holdings to sell the Hallmark network at a premium price and getting no takers, now they are focusing strongly on building and growing the network. Schleiff said, "They tried to get a premium price for the network and it didn't work. Now they have never been more committed to the network."
With the Hallmark store network included with the company, it does put the company in a strong branded position that is in many cases an envy of other media companies. This should be strong company and growth vehicle for years to come if they remain true to their brand. Eventually they should get the subsciption pricing they want, they probably need to target a slightly younger demographic which will make it more appealing to advertisers.
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