That's stop-motion animation. It's a series of individually photographed frames of posable figurines (sort of like action figures) that are physically changed in small increments so it appears they are moving when the frames are played back.
There were several popular stop-motion animation Christmas tv specials in the 60s and 70s: Rudolph the Red-Nosed Reindeer (1964), Santa Claus Is Comin' to Town (1970), The Year Without a Santa Claus (1974), Rudolph's Shiny New Year (1976), Jack Frost (1979), etc. I loved those as a kid and looked forward to them every year. Still do.
Stop-motion animation was a hobby of mine in elementary school. The school had the facilities for making stop-motion animated films and some friends and I made Western-themed films using paper cut-outs of Western town figures. Lots of fun!