In this clip, it appears that the DJ used Serato Live to program clips from records into the midi controller pad. Then he integrated use of the records in with the pad and added effects through knobs on the midi controller. This video was definitely a production so I am not sure if everything he did all happened in the time the lapsed during the video or if some of it was pre-recorded. Anyway, it showed how compatible many of these programs are. Ableton definitely adds a different layer of possibilities to traditional scratching.