More family-friendly fare is in the cards for Hallmark Channel Chasing ratings with Martha Stewart brought bad luck. So now Hallmark Channel is "Chasing Leprechauns." At a time when most television programmers are searching for over-the-top reality hits, the Studio City cable network is stepping up production of its family fare. It has increased orders for its trademark two-hour movies and is preparing a new daytime talk show featuring Marie Osmond. On Saturday, Hallmark premieres its latest movie, "Chasing Leprechauns," a love story with a St. Patrick's Day theme. Broadcast networks have all but abandoned TV movies, but Hallmark is serving more schmaltz to viewers and advertisers who crave sentimentality. Hallmark's films, which feature such once-popular TV stars as Valerie Harper ("Rhoda") and Genie Francis ("General Hospital"), have been producing healthy ratings for the flagship channel and its rapidly growing sister network, Hallmark Movie Channel. "It is important to create a destination for our viewers, and one that also resonates with advertisers," said Bill Abbott, chief executive of the channels' publicly traded parent, Crown Media Holdings Inc., which is controlled by Kansas City, Mo.-based Hallmark Cards Inc. Known for such movies as "The Good Witch," starring Catherine Bell, and "Love Comes Softly," with Katherine Heigl playing a widow in the 1800s, Crown Media this year plans to roll out 34 original movies on its two channels, including "Duke," starring Steven Weber ("Wings") as a homeless military vet who bonds with a border collie. That represents a 48% increase over the number produced in 2009. Next fall Hallmark Channel will continue to diversify its offerings beyond old "Frasier" reruns and movies with two new daytime programs: "Marie!" with Marie Osmond, and a lifestyle show called "Home & Family," which will be taped on the Universal lot. Hallmark this month acquired rerun rights for ABC's modest hit "The Middle," starring Patricia Heaton, which celebrates ordinary life in Middle America. It will join Hallmark's lineup in 2014. Hallmark's renewed embrace of programming steeped in Midwestern values is more than just sentimental. The channel has been retrenching after a disastrous attempt to revamp its lineup with weekday programming from lifestyle maven Martha Stewart. After Hallmark introduced Stewart's slate of daytime shows in 2010, the channel's viewership plunged 23%. Despite spending nearly $10 million to promote Stewart's programming, Hallmark could not wring money from the partnership. Next month Stewart will end production of her money-losing how-to program, "The Martha Stewart Show," which has been averaging 206,000 viewers an episode, according to Nielsen. The endeavor taught Crown Media a lesson in the perils of pursuing a new audience at the cost of alienating loyal viewers. Last year the channel rededicated itself to original movies, reversing its ratings slide and significantly improving its balance sheet. Helped by a bounty of year-end Christmas movies, Crown Media in 2011 posted its best fiscal year of its 12-year history. The company generated $323.4 million in revenue, a 13% increase over 2010, the company's first year of profitability. Still, the two channels' improved finances and heartwarming fare has done little to mollify Crown Media investors, who are furious over years of missteps and a collapse in the stock. Crown shares closed Monday at $1.26, up 3 cents, a dramatic fall from the $8 the shares were selling for five years ago. The stock has languished since a 2010 recapitalization that diluted minority shareholders but strengthened the position of Hallmark's controlling family, led by Donald Hall, chairman of Hallmark Cards and son of the company's founder. Hallmark Cards now owns 90.3% of Crown Media, up from its previous stake of 67%. "Hallmark has slowly become a more important channel, but the company doesn't give a hoot about the minority shareholders," said investor Salvatore Muoio, who sued Hallmark to challenge the 2010 recapitalization but lost the case. "We are just the poor saps who own 4 million shares," Muoio said of his New York-based firm. During a company earnings call last month, Peter Okin, a money manager with brokerage Stifel Nicolaus, pleaded for the Hall family to buy out other investors and take Crown Media private. "There is no real market for your stock," Okin said. I don't know how people on the board can put their heads on the pillow at night knowing what they have done to the minority shareholders over the last year. The TV channels haven't been golden for Hallmark either. Since the company went public in 2000, Crown Media has racked up $1.8 billion in losses for Hallmark Cards, according to regulatory filings. The deficits and debt scared away potential buyers when the company was shopping the channels about five years ago. Crown Media's debt of $519 million exceeds its market capitalization of $453 million. Donald Hall Jr., the company's chief executive, declined an interview request, and Hallmark Cards spokesman and Crown Media board member Steve Doyal declined to address shareholders concerns. "Hallmark should at least send investors a condolences card," said Derek Baine, cable analyst with SNL Kagan. "All the minority shareholders got diluted down to peanuts," Baine said. Now they are going to have to sit and wait until Hallmark decides to sell the company, and they are under no pressure to do that. Hallmark took advantage of the situation, and they hold all the cards. For now, Crown Media executives are hoping to improve its channels' ratings to bolster advertising revenue, reinvest in programming and pay down debt. The main Hallmark Channel is available in 87 million homes and the Hallmark Movie Channel is available in 45 million homes. Plans are already underway for next year, when Hallmark plans to introduce two prime-time series - a new arena for the channel. "We want to do more original movies and original prime-time series that fit under that Hallmark umbrella," said Michelle Vicary, executive vice president for programming. We are filling a unique void by specializing in connecting people emotionally and bringing families together with positive, hopeful, feel-good programming.