Yep, out-runner all-right. Friction drive. Clearly seen at the 5:05 minute mark. The motor is also observable, at the 2:26 and 3:01 mark, with contact to the wheel, while parked.
Looks like it has a small belt from the motor to the (air pump?)
Nice looking bike though. Looks slow and uncomfortable to ride far, but very-very stylish.
Looks like a real piece of art. Cool front suspension. He put a lot of work into making it look like a real hog with the imitation 2 cylinder. He must scare the sheet out of people he comes up on, as its so quiet.