A day after holding a symbolic "funeral", the group lobbying to return the axed TVNZ7 channel to screens plans to lodge a complaint with the ombudsman.

TVNZ7 - the country's only commercial-free public service TV station, which airs news, current affairs and panel discussion shows - was switched off at midnight on Saturday after the government last year decided not to extend its funding.

From 7am on Sunday the channel will become a TV One Plus One channel and will be a repeat of TV One with a one hour delay.

Following numerous protests leading up the closure, hundreds turned out to a "Funeral March" organised by Save TVNZ7 on Saturday in central Auckland.

People brought candles and a fake-coffin was driven up in a hearse.

More than 35,000 people had signed a petition in favour of keeping the channel.

The lobby group Save TVNZ7 hired top public lawyer Mai Chen, who says TVNZ may have acted unlawfully in axing the channel.

Save TVNZ7 spokesman Myles Thomas told Fairfax the group has limited funds for litigation, but will complain to the ombudsman this week.

If the ombudsman finds an error or wrongdoing, TVNZ could be required to reconsider the decision.

Former broadcasting minister Jonathan Coleman last year recommended to cabinet the government not extend funding to TVNZ for the channel.