Answer: The French film Le voyage dans la lune, or as it was known in the U.S. , A Trip to the Moon.
When this came out people were amazed by what they saw. Moving pictures had been available for a while, but they were basically short stage acts captured on film. This movie used many new techniques including fades, superimposed images, many cuts/edits, and even some early animation to achieve the visual effects. While the result is something anybody could put together on their computer nowadays, back then it was nothing short of a marvel.
