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.
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"The team who worked on U have done a tremendous job."
TVNZ U's hosts included comedians Rose Matafeo and Eli Matthewson, Good Morning host Matt Gibb and former radio host Connor Nestor.
Matafeo and Gibb expressed disappointment at TVNZ's decision in tweets posted this morning.
Very very very sad. I really love the television we make on TVNZU. Yeah. Gah.
Thanks for all the kind words guys. Not a great day for the @itstvnzu team, but so proud of what we achieved in the time we had.
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.