cappy: It must have been for Family Night (Bethel Talent Show) or for delegate entertainment program for the International Convention back in the Summertime. Those are the only logical explanations, if this letter is to be believed.
There is a discussion about the Happy video on JWtalk.net.
http://jwtalk.net/forums/topic/19069-happy-start-your-day-off-right/
According to one poster, the video was made for Bethel Talent Night.
Bethelites made this video as part of Bethel's annual talent night. The disapproval is coming from the fact that something made privately for the Bethel family was posted online for world wide consumption. Any other speculation about this video is just speculation.
Was the video from the FDS? No. All videos from the branch will appear on JW Broadcasting, not YouTube or some 3rd party. Just because something isn't from the branch doesnt mean it is wrong to watch or else all of us would be in trouble.
This is another good lesson about conscience. Even Bethelites in good standing at Bethel may choose music that we would avoid.
Really, the only music and videos that are not produced by immoral people or by people completely free from worldly influence is on JW Broadcasting. If you look hard enough at worldly entertainers I'm sure you will find worldly thinking, connections to Christendom, acceptance of lifestyles contrary to Jehovah, and so forth.