Nope, it’s bollocks. There will be some of it that will have been genuine, a few sheep moving here and there that they could isolate and add a sense of realism with, but I am convinced it’s mostly faked.
In some of those shots I don’t think we’re watching the movement of the sheep but rather the “movement” of the lights. The sheep are standing still and the lights are turned on and off to give an illusion of movement. At least I suspect that’s what’s going on.
Notice that at the very end it’s identified as an ad for a Samsung product called “Smart LED Technology”. Maybe what’s smart about them is that they can detect their positions, relative to the other LEDs, and flash programmed patterns.
In the walking sheep and Pong segments, watch the movements of isolated individuals very carefully. You’ll notice they’re moving rather jerkily - it’s pretty clear this is stop-motion animation writ very, very large and very, very woolly.
I seen this a few times over the past few years. I’ve always been under the impression that despite being mostly real there were some “shopped” smooth-overs.
Yeah a lot of it is run at high speed. Other than that there are things you can do with night time and lights such as having fences defining the range of motion allowable to a minor flock of sheep. It may well be that there was no computer enhancement used other than running the film fast at times but that’s not to say it is exactly as it appears.
When I was a kid, there was a logo for wool, called the woolmark. They made a print ad in New Zealand that had real sheep standing in the shape of it. I am not sure how they did it, but I suspect there may have been some (physical) cut and paste and a few staked-out guide-wires.