My immediate thought here is that since they are saying "Free advertising" that the issue is they don't want to pay Nintendo to use the music, or don't want to pay Nintendo what it wants.
I'd also guess that other productions like "Scott Pilgrim" paid to use the music.
I don't keep up with The Beeb, so I don't know about his image or what he does. It's possible that Nintendo doesn't want to be associated with him for being a deviant or whatever. I was under the impression he was some young pretty boy, being marketed to teenage girls, but I could be wrong about that, for all I know he bites the heads off snakes in front of inverted crosses, while borrowing his musical style from vintage Ozzy Osbourne. I just never got the impression he was anywhere near as cool as Ozzy from the pictures I've seen though so ummm... I'm still guessing it's a matter of the movie producers not wanting to pay what it would take for the music rights.