By ZWELI MOKGATA and XOLILE BHENGU

A FIRST National Bank (FNB) advertisement advising consumers to “cut out satellite TV subscriptions” has been scrapped following a settlement between the bank and satellite TV owner Multichoice.

In an effort to help cash-strapped consumers, FNB launched an eight week campaign guide on how to survive the credit crunch, which included what Multichoice said was the potentially harmful advice to cancel satellite television subscriptions. The pay-to-view channel has over 1.5 million subscribers who pay between R139 and R468.99 monthly for access to its television channels. Since DStv is the only television satellite service currently available, its holding company, Multichoice, took offence to the advertisement and complained to the Advertising Standards Authority (ASA).

Three new pay television companies are expected to enter the South African market early next year.

Jackie Rakitla, Multichoice general manager of corporate affairs, said: “We have withdrawn the matter, but we can’t go into the terms of the settlement.”

The advertisement had the potential to negatively affect the performance of incoming pay television operators On Digital Media (ODM), Telkom Media and Walking on Water Television. Telkom Media spokesperson Chris van Zyl said: “Pricing and offerings might change, but the offerings we announced earlier are much more cost effective than other entertainment products such as cinema tickets and DVD rentals.” Van Zyl said that even when times were hard, people would not necessarily get rid of all their discretionary spending, but rather opt for the most affordable. “If you look at the ad, FNB didn’t include shopping around for the best bond rate. That would not be in their best interest.”

Taryn Cronje, ODM spokesperson said: “ODM supports the view that people should be spending their disposable income more efficiently during tough economic conditions.

“These conditions provide the opportunity for pay-TV operators to start introducing more flexible packages into the market to ensure that there is no channel wastage in terms of the consumer’s monthly spend.”

The ASA said it had received a complaint from Multichoice, but it was subsequently withdrawn. FNB head of brand marketing communication Vicki Trehaeven said the complaint came as a surprise and the bank quickly met with Multichoice last Wednesday.

Trehaeven said although the advertisement had not made a direct reference to Multichoice, it had been sensitive to the pay channels’ fears of the advice affecting its business.

“No malicious intent was intended from the advert and we have solved the issue amicably and no fine was paid,” said Trehaeven.