TVNZ is shutting down its youth channel and replacing it with a time-delayed broadcast of TV2.
The broadcaster said TVNZ U had run at a loss for two years and closing it was a commercial decision.
Chief executive Kevin Kenrick said the channel did not work financially.
"As it is, the channel is a very lean operation and no significant savings can be made to address the shortfall.
"The team who worked on U have done a tremendous job."
TVNZ U's hosts included comedians Rose Matafeo and Eli Matthewson and former radio host Connor Nestor.
TVNZ plans to launch TV2+1 on the vacated frequency on September 1.
The new channel will be an exact duplicate of TV2, broadcast an hour later.
Kenrick said time-shifted TV is popular with viewers.
- nzherald.co.nz
