The above video shows an animated toy theatre. It's animated physically, not digitally. It's your standard paper toy theatre, but the characters and props are all jointed so in addition to sliding them around the stage, they can also be manually manipulated to perform actions. To be more exact, "...they are string-pull puppets, working along the same principle as jumping jacks, so they can be 'remotely controlled' by a puppeteer."
The theatre is called "Vaudeville", but is also known by some as "Puppet Music-Hall", and it was created by Pete Brown.
Pete, a boat builder from Ireland, shared with me that he enjoys puppetry as a hobby, mostly large-scale for parades. However, the idea of the music hall characters were "...just knocking around inside my head", so he felt he had to create something out of the premise. This toy theatre design, and the book that followed, is the creative, innovative, and fun result!