The channel is being currently beamed as `free-to-air'. However, sources said that MEN would market and distribute the channel in a big way once the approval for the import of decoders is received from the government.MEN is also planning a new entertainment channel for children named Kermit, which is jointly owned by Hallmark Cards and Jim Henson. Hallmark Entertainment is fully owned by Hallmark Cards and is currently being beamed into 60 countries.

Sources said MEN has put in an application with the government for importing digital integrateddecoders similar to those used by channels like Discovery, AXN and TNT. However, due to the controversy surrounding equipment capable of receiving KU-band signals, the government is going slow in the giving the approval.

Hallmark is believed to have placed orders with US-based Scientific Atlanta for 2,000 decoders for the Indian market. While, MEN would in charge of Hallmark's distribution Mumbai-based Bona Vista Television is likely to carry out the responsibility of ad sales for the channel.

Hallmark is expected to emerge as a serious competitor to Star Movies, especially after MGM Gold decided to close down its Asian chapter. Hallmark concentrates on big budget movies and mini series made specifically for the channel featuring eminent actors and actresses of the world.

All the movies appearing on Hallmark would be in a way premier since, they are not shown in theatres or other channels, sources said. They said that the channel's main focus is quality in terms of the movies it shows, which areprimarily meant for family viewing.

Hallmark's production includes, Merlin starring Sam Neill, Isabella Rossellini, Sir John Gielgud and Helena Carter and, Odyssey. Among the channel's latest production are, Moby Dick, Mother Teresa and 20,000 Leagues Under the Sea.

While Hallmark would look at the Indian movie-channel market, Kermit as a channel would be first of its kind. Against an outright cartoon channel like TNT Cartoon Network, Kermit would present movies and serials for children such as Famous Five. According to sources, it would be an alternative to the violent serials that are being widely watched by children in the country.Kermit would also present educational programming for children, which will aim at involving parents too. The channel's philosophy is to combine fun and learning, sources said.

Further, the movies on this channel also makes it fit for family viewing, which will be an additional selling point, sources added.