After watching the video I'm not real sure that they killed him but seeing the end result it's hard to deny that they killed someone.
I've seen a number of these videos and this one is completely different than any of the others. It seems scripted and rehearsed to me. I suspect another video of Sotlof's beheading will appear in the next day or so.
I couldn't find a video of the actual cutting, but the head on the body after sure looks like him