There's lots to unpack here.
Giant evil Teletubbies. A gyrating Scott Weiland.
And a dark Sarah Michelle Gellar, who was a huge fan of the band. At the time, Gellar was a rising star with her TV series Buffy the Vampire Slayer and movies.
The clip features little people in costumes that look like the Teletubbies, which were big at the time. Scott claimed this was just a coincidence, and that the creatures are based on a dream he had.
Apparently the teletubby thingies represent an unhealthy addiction that doesn't seem as bad as it is.
Storax Sedan (YouTube comments) offers these great insights below which seem to be spot on:
The lighting is bright and warm which signifies the band members thinking they're happy. But when the lighting gets cold and dark, Sara shows Scott that those teletubby things are truly vile, evil, that they're not a true path to happiness and that he doesn't need them anymore. Then after, when the lighting goes back to the bright and warm, Scott is shown with Sarah dancing showing that he is truly happy with her and doesn't need the teletubbies to be happy, until she leaves him. Then the lighting goes back to the cold and dark and he relapses and caves back into his addiction as he walks away with the teletubbies hands in his.