Initially commissioned as a two-episode series, the unscripted and unrehearsed show debuted last week with Gogglebox's Scarlett Moffatt presenting.
A second episode fronted by comedian Jack Whitehall will now not go ahead.
"We're brave enough to take risks with innovative programme ideas but also to acknowledge they don't all work and move on," a spokeswoman said.
Thursday's episode saw Moffatt front the show, with no idea what was going to happen.
She took part in a number of sketches, including one as a Channel 4 news presenter, and guests included Blue singer Duncan James and Steps.
However only an average of 400,000 viewers tuned in to watch the programme live - a third fewer than usual in the 21:00 timeslot for the channel.
Viewers were generally left unimpressed, with one tweeting it was "unwatchable".
Another commented: "Absolutely awful TV. Won't be watching that again!"
Channel 4 initially announced it had commissioned three episodes, but the broadcaster told the BBC it had only ever scheduled two.
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Channel 4 has decided to scrap its latest entertainment show Host the Week.