Sveriges Television (SVT) chose to put imagery from Obama's historic visit to Stockholm last year to the tune of the Swedish national anthem Du gamla, du fria.
The hunt for a "scaled back" version of the song backfired, however, after observers noted the pared-down rendition was recorded by the band Svensk ungdom (Swedish youth). Anti-racism magazine Expo reported that its members have been outspoken Nazis.
Ulf Johansson, publisher of SVT's year-in-review program, told the tabloid Aftonbladet that the producers had wanted a simple version of the anthem.
"It's obvious that we have made a mistake," Johansson told Aftonbladet, who reported on the blunder on Thursday. "I think it's an embarrassing mistake."
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The news programme has now been temporarily removed from the channel's web-streaming service SVT Play, as editors replace the offending piece of music.