Groundbreaking Study Reveals Significant Media Generation Gap in the Use of New TV Technology, Buying Power and Brand Loyalty

Baby boomers are not only more affluent than
millennials but, also, are both more engaged with linear television and
less likely to change the channel or multi-task. Millennials, on the
other hand, have not only less buying power than baby boomers but,
also, view less linear television since they are more comfortable using
new technology and products such as streaming video, DVRs, VOD and PPV
to view video content.

These are just some of the findings from "The Consumer Television
and Technology Study" conducted by Millward Brown and commissioned by
Hallmark Channel to assist advertisers in navigating the evolving
television environment. The study, for the first time ever, evaluated
adoption of new television technologies, viewer engagement, buying
power and brand loyalty.

"The results from the study are eye opening, with strong
implications for the television industry," said Jess Aguirre, Senior
Vice President, Research, Hallmark Channel and Hallmark Movie Channel.
"We had expected a generational gap in the media marketplace between
boomers and millennials, but we didn't expect the results to be so
significant."

People are watching more television than ever before due to
significant life stage changes as the population ages and because of
the advent of new television technologies. (Nielsen Media Research NPM)

At the same time, the adult 18-49 demographic is stagnant while 78
million boomers turn 50 over the next ten years. Children of boomers,
the millennials (14-31), are also coming of age and now represent 20%
of the total United States population. (Nielsen Media Research UE/U.S.
Census)

New technology is dramatically effecting television viewing and the
marketplace and causing a media market generation gap between baby
boomers and millennials.

The results uncovered noteworthy differences between two key growth
segments: boomers (primarily the 35-64 media target) and millennials
(primarily in the 18-34 media target). A significant generation gap
exists between these two groups in their understanding, adoption,
ownership and use of new television technologies as well as the degree
of engagement these two groups have with television programs.

Key findings from a national telephone survey among 1,200 cable and satellite viewers:

-- Only 31% of millennials believe new television technologies are
complicated and difficult to use vs. over half (55%) of boomers.
-- 45% of millennials who have a DVR use it regularly/fairly often vs.
under one quarter of boomers (24%).
-- 87% of millennials who have a DVR say they regularly fast forward
through commercials and are more likely to be switching channels and
multi-tasking while the television is on, indicating they are less
focused than boomers.
-- Millennials are also more than twice as likely as boomers to consider
buying a DVR next year (11% boomers vs. 25% millennials).
-- Over one quarter (27%) of millennials go to websites to watch video vs.
only 9% of boomers.
-- Millennials are more likely (52%) to consider mobile devices as forms
of entertainment vs. boomers (35%)

Boomers, on the other hand, are more traditional in their viewing
habits and slower in their adoption of new television technology
products. Even among boomers who do own a DVR, they are less likely to
fast forward or skip commercials. Boomers are also a more attentive
audience and less likely to engage in other activities while watching
television. They are also more likely to stay on one channel while the
show they are viewing is on -- with 72% of boomers preferring to watch
one show and not change channels while it's on vs. 55% of millennials.

The study found that boomers are more affluent and are much more
likely to be the primary wage earners and handle the household finances
in comparison to millennials.

In terms of brand loyalty, Millward Brown research indicates 50% of
boomers don't stick to any one brand and 61% agree that in today's
marketplace, it does not pay to be loyal to one brand. (AARP Brand
Loyalty Study 2005) "With these findings in mind, it's no surprise that
the media buying bull's eye -- which not long ago shunned adults 25-54
-- is now widening to embrace the increased value of boomer adults
35-64," said Aguirre.

Hallmark Channel, owned and operated by Crown Media Holdings, Inc.,
is a 24-hour basic cable network that provides a diverse slate of
high-quality entertainment programming to a national audience of 84
million subscribers. The top tier program service is distributed
through more than 5,450 cable systems and communities as well as
direct-to-home satellite services across the country. Hallmark Channel
consistently ranks among the top 10 ad-supported cable networks in
Prime Time and Total Day household ratings and is the nation's leading
network in providing quality family programming. Crown Media also
operates a second 24-hour linear channel, Hallmark Movie Channel, and
will launch Hallmark Movie Channel HD in first quarter 2008.

For more information, please visit http://www.hallmarkchannelpress.com.

About Millward Brown:

Millward Brown (http://www.millwardbrown.com),
one of the world's leading research agencies, is expert in advertising
effectiveness, marketing communications, media, and brand equity
research. Through the use of an integrated suite of validated research
solutions -- both qualitative and quantitative -- Millward Brown helps
clients build strong brands and services. Millward Brown has more than
70 offices in 44 countries. Additional practices include Millward
Brown's Media Group (media effectiveness), Millward Brown Optimor
(focused on helping clients maximize the returns on their brand and
marketing investments), Millward Brown Multicultural, Millward Brown
Pharmaceutical, Millward Brown Precis (PR measurement), Greenfield
Consulting Group (qualitative), Dynamic Logic (digital and cross media
marketing effectiveness), and Focalyst (specializing in the Boomer and
Mature markets). Millward Brown is part of Kantar, WPP's insight,
information and consultancy group.