"It is a better commercial deal and that was one factor - the change aligns with our mandate under the Racing Act to maximise returns to the racing industry," he said.
"But it is also about customer experience. Moving to Sky enables us to deliver an enhanced content offering and aligns with our strategic vision to make racing the best entertainment business for New Zealand."
Mr Brown said the move was indicative of the declining services the TAB offered to punters and he was annoyed there had been no consultation with customers.
Freeview general manager Sam Irvine said the platform was disappointed to lose the channel.
"There are a whole lot of people who don't want to pay for Sky or can't afford it. They are the ones who are going to be missing out," he said.
Sky corporate communications head Kirsty Way said Sky already broadcast TAB TV in conjunction with Trackside and the offerings of both channels would now be enhanced.