Hallmark Channel's ratings rank decline from 22nd total day/21st prime time to 30th total day and 29th in prime time (versus 1Q10), yet advertising revenues were up 8.5%. That's a better advertising market for you. (Note the revenues include ad sales on the much less distributed Hallmark Movie Channel, too).
One of the issues for a public company with a single network is the materiality of an agreement with any major multichannel distributor. Note the following disclosures about its relationship with Cox:
"A distribution agreement with Cox ended on December 31, 2010. Our Channels continue to be distributed by Cox under the terms of the expired agreement through four extensions to that agreement that expired on April 30, 2011, while renewal negotiations continue. The Cox distribution agreement covers approximately 5% of our subscribers for the Hallmark Channel and 2% of our subscribers for the Hallmark Movie Channel."
Crown did not mention that negotiations were continuing with AT&T, which dropped Hallmark Channel and Hallmark Movie Channel last September.
Crown Media 10-Q