Zbigniew Rybczyński (often called Zbig) actually used this technique to produce a film called The Fourth Dimension (1988). I guess it's the same technique used in this video, and the effect is really cool. You divide the image into lines, and delay each line a frame further. Each new frame advances one line. So by the time the last line of the first image comes in, the very first line is already a lot of time ahead. Very cool indeed!