DStv, e.tv and M-Net which previously showed the new advert this weekend but which the SABC banned on Thursday, says they will no longer do so.
DStv said the advert "could be deemed offensive" and e.tv said that the commercial "trivialised" xenophobia.
"Whilst we understand that the commercial is a parody, we are not conviced that all our viewers will interpret it in the way intended," Chris Hitchings, CEO of DStv Media Sales tells me. DStv Media Sales is the commercial advertising arm which books TV commercials for MultiChoice's DStv channels and M-Net.
"We have a responsibility not to broadcast material that could be deemed offensive to our viewers and we have exercised our rights in this regard."
E.tv also stopped showing the Nando's ad from Tuesday in which basically all of South Africa's residents disappear, leaving a lone Khoisan who says he was in South Africa first. The ad which adds two new products to Nando's "diverse range" has a strong message against xenophobia and says the company celebrates diversity in all its forms.
"E.tv decided last night to suspend the airing of the Nando's xenophobia" advertisement," says Monde Twala, e.tv's head of channels. "e.tv respects creativity and the channel has previously flighted advertisements that have been rejected by other broadcasters."
"In evaluating the advertisement, e.tv came to the conclusion that it trivialised xenophobia which remains a sensitive and volatile issue in South Africa. e.tv reserves the right, at any time, to withdraw a commercial from the channel on grounds of taste or legality," he says.
I asked William Bird, the director of Media Monitoring Africa (MMA) on what he's making of this and his thoughts. "I really am quite surprised by the decision," says William Bird. "Obviously they are within their rights to say no, but the question is why? It seems a rather unusual step to take, to avoid controversy, all the more so given that it has already gone viral on social media."
"Given the issues of xenophobia that we have, I think even if it is an advert that seems to raise a serious issue in its effort to sell us chicken we should err on the side of airing. If it is able to get people to talk about xenophobia even better," says William Bird.
"I find the suggestion that it withheld as it may offend some viewers simply ridiculous for a number of reasons. Firstly, it is clearly a spoof of xenophobic logic taken to extremes with people literally being "proofed" away. Sure it doesn't deal with the nuances of colonialism and land grabs and other questions of identity. But then it is an advert for chicken not a documentary on xenophobia and identity. Secondly to suggest it isn't being shown as it may offend, undermines the media's role - especially the public broadcaster to challenge their audiences."
"Thirdly however, and perhaps most obviously, there are far more adverts that actually do offend viewers that they allow to run - some so bad they offend your intellectual sensibilities, while others plainly reinforce racial and sexual stereotypes," says William Bird. "So the question remains as to why to avoid controversy? Is it perhaps a hangover of The Spear debate? Either way, one thing which the broadcasters' decision to not broadcast the ad will do, will be to ensure even more people know about it and want to see it," he says.
Tashi Tagg, the noted South African TV critic and pop culture expert from TVSA.co.za tells me that the South African broadcasters' bru-ha-ha to yank Nando's off the air "gives Nando's an edge on the advertising scene".
"It's giving them loads of free advertising and buzz - everyone's talking about them. Their ad is doing well on the internet and they don't have to pay broadcasters to flight it. So its ultimately Nando's who is winning."
Tashi Tagg also says that it gives Nando's "loads of fodder for future campaigns. They can run with the copy: 'Nando's - so spicy ... the broadcasters are too chicken to air our ads," she says.
Below is the full Nando's diversity TV commercial on YouTube where it's gone viral and has amassed more than 220 000 views since Friday when the TV advert was posted.