Yeah but who's actually playing? is the music recorded live once in stop motion and then played back? is it a cinema like experience or a concert experience? if you go to an actual show what you're gonna see on stage?
My guess is that the musicians would be off-stage and you get the KISS avatars "performing." So live music to a video. Or the musicians get to be on stage, maybe in costume(?) and playing along to the avatars. I think it's lame, but I get what the band is going for.
The ABBA thing is like this. It's not obvious at first, as the band is hidden in the dark initially so you think it's a backing track but are then revealed early in the set. It's a fantastic reveal too. They sound incredible and the live band really makes it afaic.