Blending a romantic pop-ballad with a seasonal music video full of snow and festive atmosphere, this 80s music video grew quickly into a cult classic Christmas video after its release.

The video shows Wham! members George Michael and Andrew Ridgeley accompanying girlfriends to see friends at an unspecified ski resort cottage: the cable-car that can be seen in two shots is from Saas-Fee, Switzerland, where the video was filmed. It becomes clear early on that the character of Ridgeley's girlfriend (played by model Kathy Hill) was previously in a relationship with Michael and that the song is aimed at her. She can be spotted throughout the video by the fact that she is usually wearing red, but everyone else is wearing more muted colors.

There is a brief flashback to a prior Christmas, showing Michael's character presenting Kathy Hill's character with a jewelled brooch. In the present time, Ridgeley is wearing the brooch, suggesting that Hill gave the same gift (perhaps by regifting it) to her new love after she and Michael parted ways. When Hill wears the brooch after receiving it from Michael's character, it is "right side up", and when Ridgeley's character wears it, he wears it "upside down". On numerous occasions, Michael presents a thoughtful expression, suggesting his conflicting emotions. As Michael is decorating the Christmas tree some decoration falls to the floor where Michael's ex-girlfriend is sitting and the ex-couple shares a few seconds of a knowing look at each other.

Her seeming indifference to Ridgeley's open displays of affection makes the viewer wonder if Ridgeley's heart is the next to be broken. At the end of the video, everyone leaves the cottage and when the group get out of the cable-car, they are all properly "paired off" with Michael and his new girlfriend looking happy.

The video also featured the duo's erstwhile backing singers Pepsi and Shirlie.

After many years of circulation in low-res, the video has since been rescanned in 4K definition from the original 35mm film. This restored version was released on 13 December 2019 in 4K Ultra HD resolution. The music video's original film director Andy Morahan found the original 35mm rushes and worked closely with teams at Cinelab London and VFX artist Russ Shaw at Nice Biscuits post production to recreate the video using the higher-resolution film.