He also wasn't able to repeat the success of this song/album. The follow up album was a complete flop; it sold less than 10k copies. The group disbanded right after.
It's playback yes. They did play live on other occations. But I read that reviewers wasn't impressed. But the singer didn't handle the sucess very well and became very cocky. Which in the end hurt the band.
At Festivalbar they never sang live. Mostly because it was one number after another. Out goes an artist and a few seconds later the next shows up; it's easier to lip-sync than trying to get all the instruments ready when you have no time.