Both channels are owned by Scripss. Not surprising since so many of old Food Network shows are on the Food Channel now, and current stars like Bobby Flay, Rachel Ray and Emeril starting new shows on the Food Channel as well as their existing shows on the Food Network.
Here's an article about it
http://www.huffingtonpost.com/2010/02/19/cooking-channel-food-netw_n_469128.htmlThe article says that the advertiser demand for the Food Network was beginning to out-pace the growth in viewership so they developed the Cooking Channel as a means to deliver more audience to advertisers.
Edited to add:
An interesting article from the NY Times about the status of the Food Network
http://www.nytimes.com/2010/04/21/dining/21network.htmlTHE Food Network is trying to take it up a notch by taking it down a notch.
The people who brought the brassy calorie-pusher Paula Deen, the energetic spice-sprinkler Emeril Lagasse and dozens of other stars to a mass audience are furiously preparing to start a spinoff network on May 31.
Called the Cooking Channel, it is lining up low-key programs targeted at a hipper crowd interested in the grass roots of food culture.
Ms. Deen, for one, will not have a time slot. But three young guys from Canada who build taco vending machines and other weird contraptions for a show called “Food Jammers” will.
more....
From Wikipedia:
Cooking Channel is the replacement for Fine Living Network as of May 31, 2010. The network, owned by Scripps Networks Interactive, is a spinoff (in essence) of Food Network, also owned by SNI, but will focus more on instructional shows rather than "reality style" and contest programming that Food Network is now geared towards. The original plan was to implement the change in the fall of 2010,<1> but it was later announced that the switch was being moved up to May 31, 2010 to coincide with Memorial Day in the USA.<2> Cooking Channel launched a high-definition feed on June 30, 2010. The channel has also announced it will eventually offer an on demand version.<1>
Interesting stuff...