How Hallmark Became a Holiday Media Empire
The holiday season is a critical period for Hallmark, with the company producing an impressive 80 hours of original holiday-themed programming, including two unscripted series, two scripted series, a holiday special, and 24 movies. These movies, with titles such as “The Snow Must Go On” and “Christmas at the Catnip Cafe,” air from mid-October to Christmas, catering to the growing demand for festive content.
Hallmark’s expansion into the experiences business is a strategic move, with the company launching a Hallmark Christmas Cruise and the Hallmark Christmas Experience festival in Kansas City, Mo. According to Anjali Bal, associate professor of marketing at Babson College, “I think that’s one of the most brilliant business decisions they’ve made, and they’re expanding there because they have to. It allows a connection between the consumer and the brand on a direct level in a way a movie can’t provide.”
The Evolution of Hallmark’s Business Model
Hallmark’s legacy is rooted in celebrating holidays and Christmas, with the company’s chief brand officer, Darren Abbott, stating, “There’s a reason everyone else is trying to do this, and it’s because consumers are looking for this.” Founded in 1910 by an 18-year-old entrepreneur, Hallmark built its brand over the years through cards, holiday ornaments, and retail stores. The family-owned business ventured into entertainment in 1951 with the television presentation Hallmark Hall of Fame.
Today, Studio City-based Hallmark Media operates three cable networks, including the Hallmark Channel, which debuted in 2001, as well as a subscription streaming service. The company produces about 100 movies a year, both holiday and non-holiday films, with the holiday season being a key driver of entertainment revenue. As a privately-held company, Hallmark did not disclose its finances, but experts acknowledge the holiday season’s significance in the company’s overall revenue.
Hallmark’s Television Viewership and Audience Engagement
Holiday programming has become increasingly popular with audiences, with holiday features making up more than a third of total movie viewing time in December, according to U.S. television data from Nielsen. Hallmark’s television viewership also edges up in the months leading into the holidays, with the company commanding 1% of total viewership across linear TV and streaming in October, ticking up to 1.2% in November.
Hallmark’s feel-good movies typically resonate with audiences across the country, with experts noting that the films are designed to be highly appealing to broad audiences. The company has also turned to brand partnerships, including with the NFL, to grow its audience and the types of stories it tells. Last year, Hallmark released a movie centered around a Kansas City Chiefs romance, and this year, it released one about Buffalo Bills fans.
Hallmark’s Experiences Business: A New Frontier
Hallmark’s foray into the cruise business might seem odd, but it follows a long tradition of entertainment companies creating real-world experiences with their fans. The company launched its first “Hallmark Christmas Cruise” last year on Norwegian Cruise Lines, which sold out even before a planned TV marketing campaign. The inaugural cruise from Miami to the Bahamas spawned a wait list of 70,000 people, prompting Hallmark to add a second cruise.
For this year’s cruise, from Miami to Cozumel, Mexico, Hallmark had to book a bigger ship to accommodate demand. During the November cruise, attendees participated in various Christmas festivities, such as ornament-making workshops and cookie-decorating, and mingled with Hallmark stars in various on-stage games. The cruises even spawned an unscripted Hallmark show focused on the experiences of several attendees and their interactions with Hallmark actors.
According to Abbott, “We’re a bit of a respite from what’s going on in the world right now, and these experiences sort of hit on that at the right time and the right place.” As Hallmark continues to expand its experiences business, it’s clear that the company is committed to creating a holistic brand experience that goes beyond traditional media.
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