"Wizards in Winter" is an instrumental track by Trans-Siberian Orchestra, released on the 2004 album The Lost Christmas Eve.
A clip of the band playing the first few seconds of the piece was used in a commercial for its most recent concert tour, and the song is often used to open their live shows.
The lights were synchronized to the music, and the show was free for anyone passing by who tuned to a specific low-power FM frequency on their car radio.
A three-minute video of the show playing circulated widely on the Internet, and also spawned many others who imitated the style of setting their Christmas lights to this and other songs.
[1] A similar animation was used in a commercial for the UK's National Lottery, although, according to a press release, the advertising campaign "was created by Abbott Mead Vickers BBDO".