I am not convinced that it is altered. I see no clear signs of editing and the typical giveaways are not present (eg. the shadows are all consistent). The crowd sounds are also consistent with the other videos from the talent show:
http://www.kollaboration.org/videos.php
I also don't see why this organization would manufacture this video. My friend who is a film major said that the quality is too poor for him to really tell if it is edited. Why don't you contact someone from the Kollaboration organization and ask?