Choice TV will operate 24 hours a day, broadcasting three eight-hour loops of programming.
The channel provides added value to the Freeview free-to-air platform and hopes to make it a more attractive option for people who are reluctant to pay for Sky.
However Choice TV's owners will have a challenge establishing it in an already crowded television market dominated by Sky TV.
The advertising market is under pressure with heavy discounting and a new range of pay-TV options such as Igloo and internet-based Quickflix.
Choice TV is owned by television production industry veterans Vincent Burke and Laurie Clarke, the principals of Top Shelf - producer of programmes such as Target for TV3 and Media7 for TVNZ 7.
TVNZ 7 is about to close because taxpayer funding has been dropped, but Choice TV general manager Alex Breingan said it would not be taking over the mantle of public TV.
Advertising consultant Martin Gillman said the programming line-up announced so far was relatively good.
Gillman said audiences for small digital channels such as Choice TV - like Prime TV and Four - were a tough sell because they were "below the radar" for bigger advertising agencies.