Unfortunately, it has a lot to with money.
The channel is owned by who, Vivendi? Who in turn is part of a large conglomerate Vivendi Universal, right? Conglomerations do not look to have loss leaders in any sector they own. Not even news, which at one time was supposed to the ethical loss for a broadcasting company.
Second issue: sci-fi and fantasy shows/movies are special effect heavy. What was that sci-fi original about a prison that was like a rotating cube with deadly options if you picked the wrong door? Basically that was a locked room myster with the least amount of effects. For Sci-fi, it was highly bankable because the special effects budget was extremely low.
Yet any other - spaceships to dragons - each of these easily cost 4-8 million just on post-production green screen effects. Hence, it is cheaper to high a Baldwin than an effects team.
Also, HD is not a panacea for any of the older stuff. Any movies not made digitally will not enjoy 1080i or p. Basically, an old movie will just look better in widescreen and then best on a larger screen.
So with all these negatives, how can the scifi channel make it in a content market?
Tell me if these ideas apeal to you...
1. Non-prime time should have the cheaper, old TV shows like Twilight zone, lost in space, even the wild, wild west (it had futuristic themes in it) - these shows are for the stay at home, people who are home sick, or the Tivo crowd, who are fans of a particular show.
2. Prime time: Show second run NBC/Universal/Vivendi shows. This includes but not limited to, shows that are currently on TV but will be a season behind. Show the first season of Heroes as an example.
3. Also, try giving the viewing audience a more international taste of programming. Subtitle or translate foreign sci-fi TV shows. Hey, what nerd here in the US wouldn't like to brag that they found the next Red Dwarf or Doctor Who in the US?
It boggles the mind how screwed up Sci-fi is. I think because they don't do enough marketing to let regular people think they can enjoy sci-fi/fantasy TV. After all, Lost is just Fantasy Island, right?