What you're seeing above is a performance of "B Project" by the 1980s italo disco act Pink Project on the Italian TV program Discoring. Pink Project — which was composed of members of the legendary production squad Kano — specialized in mashing up pop songs decades before this practice was popular.
For example, their single "Disco Project" tossed Pink Floyd and the Alan Parsons Project in a blender, whereas "B Project" mixed Michael Jackson's "Billie Jean" with The Greg Kihn Band's "Jeopardy" (a fucking hilarious music video in its own right).
But what is the significance of the conspiracy hoods and mutant jawlines? Is that a question we really need to ask? Anyway, here's a performance of "Disco Project" from German TV in 1982. They have yet to adopt the monster look but have acquired a confused children's choir.
BONUS: Italo weirdness out the wazoo.