Sources said VH2's audience share has been robust this year, but the channel is largely dependent on revenue from ringtone advertising, which is slowing down.
It is not known whether MTV is planning to axe the channel in Europe or around the world. A spokesman for MTV declined to comment.
In May, VH2 reported a 0.1 per cent share of total viewing in multichannel homes, while the average multichannel viewer watched the channel for one minute, according to the latest figures from Barb.
VH2, which is billed as a "brother" music channel to the female-targeted VH1, was launched in 2003.
It is aimed at men in their late twenties and offers guitar-based music from the 90s and the present decade. It features bands such as Oasis, Muse, The White Stripes and The Strokes.
Viacom Brand Solutions handles airtime sales for VH2.
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