Before the meltdown of the U.S. housing market, it seemed everyone was making money, the big boys on Wall Street, of course, but also countless sharp-eyed investors in Everytown USA. They were trading on the then-vital real estate market, buying fixer-uppers, investing a few thousand, then flipping them for a handy profit as the market rode up.

Even homeowners who weren't flippers were keeping an eye on their home's value, along with making mental notes about how a thousand here and a thousand there would play out were they to sell.

It was a great time for HGTV, the home improvement network, with its shows about people buying and selling homes and making money.

But that time's past, and now HGTV could use a makeover of its own. Ratings in its core 25-54 demographic have stagnated, and media buyers think its programming has gone stale.

That makeover is coming in time, and most likely it will set the network on its next growth curve, judging by what's happened at sister channel Food Network after a makeover that shifted its focus from how-to shows to in-studio competitions like “Food Network Challenge.”

But for now, heading into this year's upfront market, HGTV is doing more tweaking than anything, with the emphasis on shows about folks prettying up the house they’re already in.

Michael Dingley, senior vice president of programming at HGTV, describes them as story-driven reality shows in which each episode follows real-life people through an event such as staging a house for sale. “We’ve had great success with story-driven formats,” he says. “The selection of homeowners is also key because they are the entry points for our viewers.”

Media buyers think that's an okay strategy, at least for the time being, noting that HGTV is not losing viewers and it's seeing increases in demographics outside its core audience.

The network’s identity
HGTV has done a good job building a solid brand around reality shows that focus on home decorating. And it has generated some attention from events like the recent special “Dream Home 2008” and the continuing reality competition “Design Star.”

Dingley says the aim is to remain hearth-focused but to be always looking toward the next thing that's going to attract viewers.

“We look at long-term trends out there and what’s going on in people’s lives,” says Dingley. "We look at lifestyle changes, things going on in the economy and the world. These things impact what people are looking for.”

The network’s target audience
HGTV targets homeowners, primarily adults and women aged 25-54.

The network’s ratings
Despite adding reality shows like “Design Star,” HGTV’s ratings have only been decent. Its primetime audience among 25-54s in first quarter was flat to last year at 505,000 viewers.

HGTV may be losing some viewers to Food Network, notes Miraj Parikh, director of Spark Communications, a division of Starcom MediaVest Group.

“They’re also a mature network in the grand scheme of things,” he says. “They’re at a point where they’re sticking to who they are from a programming standpoint. They’re not bringing in things just to drum up ratings.”

One area where its audience is growing is among younger viewers. Its 18-34 audience in first quarter was up 17 percent, to 160,000 viewers, and its 18-49 audience was up 6 percent, to 429,000.

The network’s competitive set
HGTV competes with Food Network but also a slew of home improvement shows on other networks, such as A&E’s “Sell this House” and TLC’s “Trading Spaces.”

It also competes with networks like Lifetime that do well among women 25-54.

What’s new for 2008/09
HGTV has a long lineup of reality shows and it recently renewed several, including “Color Correction” and “Save My Bath.” “Design Star” returns in June.

Among its new shows are “Rate My Space,” a fixer-upper based on a feature on HGTV.com in which users submit photos of their decorating efforts, and “Dear Genevieve,” a design show set for 2009 with Genevieve Gorder, who was once on TLC’s “Trading Spaces.”

The network is adding more like “Good Buy, Bad Buy?” where real estate experts help potential homebuyers choose between a few homes.

The network’s upfront outlook
On a scale of 1 to 5, with 5 being excellent: 3.5.

HGTV will do well in the upfront because it’s a top 25 network with a clear focus on home improvement. But media buyers are looking for more than just stable ratings. Many want to see HGTV shake up its programming with shows that generate buzz and increase its ratings.

Links to past upfront stories:  

^DIY
Hallmark
truTV
FX
AMC