It comes from the Funny or Die folks, and they had the idea of disguising the singer Jewel and have her go to a karaoke bar to perform her own songs. The video is very nicely done, and Jewel has a good time with it all, playing a very shy office worker -- and the make-up is excellent.
Fun, too, for me, is that the bar where this all takes place, The Gas Lite, is actually very close to where I live. In fact, I passed it a couple of days ago, on Wilshire Blvd. in Santa Monica. (They clearly proud of their participation in this event, since they note it out front.) The place is probably about 3-4 miles away from me. I've never been there, but driven by often.