A chunk of Hallmark content is available on-demand for free via Xumo. Video quality is so-so but certainly usable with Hallmark style content. Playback via a custom channel is possible, but requires some custom backed services to enable.
99% of all content viewed through Channels is VOD. The only meaningful "live content" is live sports and live news. Outside of that, it is just prerecorded VOD content stitched together by the content provider. To use VOD, you need to force Channels to play it and figure out how to present it as a channel (so you can select it).
The annoyance of playing sequential VOD content via Channels is that it always gobbles the initial M3U playlist content (presumably as a real-time synchronization mechanism). Simply looking for "#EXT-X-PLAYLIST-TYPE:VOD" and using that as a flag to disable the pre-gobble would let Channels play sequential VOD content via what I have to believe is a trivial change. Otherwise, you need to point the channel to a custom server that feeds back the playlist incrementally to make Channels happy.
Seems like it would also be trivial for Channels to recognize a per-program tag within the EPG. If you select a program with such a tag, use that URL instead of the M3U list URL. Suddenly the EPG becomes two dimensional and a large amount of non-linear content can be integrated with ease.
The key to these kinds of changes is they enable the community without requiring Channels to get into the VOD content discovery or integration business.
I have a proof of concept running on one of the free streaming providers where when you choose the channel, it always starts playback from the beginning (regardless of where the program is timewise). My Tivo could not even do that (unless it happened to be on that channel). Non-linear programming is the present and future-- would be great to see Channels take some baby steps in that direction.