video editing and filming question

learning to use your camera or camcorder can make a huge difference in the quality, brightness and clarity of your videos - as long as your camera / camcorder is a capable camera / camcorder.

i looked up your camcorder on BHphotovideo.com and it doesn't seem to be well liked. i looked up the stats, and notice that it has a small sensor, which means poor lower light performance. the manual mode and white balance seem limited, there's no aperture or shutter priority - basically it's a soccer mom/dad camera, and will do better in broad daylight but is not made for dim or challenging lighting. many of the reviews seem to concur.

whether you buy lighting - which probably won't be cheap and will require that you learn how to use it - or buy a better camcorder or camera, which will also have a learning curve, it's not going to be something you learn in a few minutes. you might want to look into a larger sensor camera or camcorder with excellent auto or program mode.
 
Getting the camera up high enough so that people walking by don't get picked up in the video would be good.

It looks like the stage lighting may be enough. I don't think adding a video camera light would do that much.
 
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If your camera has mic input, upgrading would be helpful. Maybe use a Zoom recorder and overlay the audio.

As far as camera features, I've found that experimenting with all the modes, practicing with white balance and manual can yield good results. Maybe even doing video for another group or two may help aclimate to your camera.

For lighting, it could a few colored spot lights otherwise you can get into a whole other thing.
 
The single thing that makes the most difference in camera image quality is light. Even an inexpensive camera looks better with more light resent. As light drops, noise and static in the picture increase because the gain goes up, adding noise.

More light = better image. Changing light with auto-exposure on = varying image quality.

Also, you have a black hole in the lower right corner of the image - there's evidently very little light there. In fact, the whole area is dark.

If you can add some base level lighting above and below the stage (maybe a row of low wattage LED strip lights?) you will have a better overall image. That won't help bands who want a blackout at the start and end of every tune, but it's your stage.
 
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The first thing that I'd do to make the video better is fix the sound. I second the suggestion to look at a zoom recorder, maybe the H5.

I also agree that more light is better. A lot more. Point the lights where the subject is. In this video, the light seems to be pointed at the wall A/C unit. That's a decent enough camera, if you give it proper light I bet you'll be satisfied. I don't think a better camera would be worth even thinking about until you bump up the lights.