Davie, who began commentary work with Sky in 1996, was ''naturally disappointed'' to be dropped.
''I'll miss the chance to see players as they emerge. But I recognise this is the nature of the media industry.''
His absence means there will not be any South Island voice on the First XV programme.
Sky is expected to broadcast more than 40 secondary school matches this year, but only three or four in the South Island.
Davie has been a regular rugby commentator for Sky Television for the past 17 years.
He also did radio work in cricket and rugby for 30 years from 1983, and retired as a cricket commentator on Radio Sport last year.
After four years of a format featuring two commentators and one colour analyst for First XV games, Sky has decided to revert to having one commentator and one analyst. Davie is the sole casualty.
''The three-man style worked brilliantly and was a real point of difference,'' Davie said.
''You got three different viewpoints and it made a huge impact on viewer and subscriber numbers.
''Subscriber numbers to the Rugby Channel and viewing hours trebled in the last three years. Settling for the same old format doesn't make sense.''
Davie has seen the emergence of three All Blacks, several Super players and many ITM Cup players from First XV rugby over the past four years.
''I have enjoyed seeing the talent emerge before others got the chance. I knew I was seeing All Blacks of the very near future.
''One of the most notable was halfback TJ Perenara, who captained the New Zealand schools team in 2010.''
Davie worked for radio and television on part-time contracts. He has been director of development for the Otago Medical Research Foundation since 2010.
