The video, being sent around loyalist pubs and estates in the area, shows footage of 15-year-old Michael McIlveen with the words: “F**k Micky Bo, three kicks to the head ho hi ho. Three kicks to the head and I was dead.”
The video contains paramilitary emblems associated with the Ulster Defence Association.
The video also contains a number of sectarian slogans, calling for Catholics to be burned out of Ballymena and sent to Dublin.
Less than two weeks ago, it emerged that a loyalist bonfire in Ballymena had a tricolour placed on top of it with the words “F**k Micky Bo”, referring to a nickname for Michael.
Details of the video first came to light when it was sent to a Protestant friend of the late teenager.
Local Sinn Féin MLA Philip McGuigan said the video showed the anti-Catholic bigotry which existed in the mainly loyalist town of Ballymena.
“It goes against the boundaries of all decency,” he said. “This kind of moronic behaviour can only be described in those terms.
“This depth of behaviour would not have been seen in the southern states of America by the worst elements of the Ku Klux Klan.”
Former DUP mayor of Ballymena Tommy Nicholl also condemned the video.
“It’s disgusting,” he said. “If it is circulating, it’s about time the police did something about it and removed the images from circulation.
“This is something no one from the unionist community would be in favour of, unionist people want to live in peace with their neighbours.”
A number of teenagers from Ballymena have been charged with offences relating to the murder.