I agree, looks totally fake. I just mean that they could still later kill the men.
I kind of look at it as a hoax. Someone created this using some type of editing program. Those Japanese people were inserted into the video. Which does suggest they might not even be hostages at all. Why make a fake video if you could just as easily have made a real one instead? Unless you don't really have any hostages.
This video was released to the news media as being a real threat. So who is behind the creation of this video? Is it our own government? Or is it just some independent hoaxer?