how does it work?
It creates an illusion of movement by conveying a strip of perforated film bearing sequential images over a light source with a high-speed shutter.
Kinetoscope
 The Kinetoscope was not a movie projector, but introduced the basic approach that would become the standard for all cinematic projection before the advent of video, by creating the illusion of movement by conveying a strip of perforated film bearing sequential images over a light source with a high-speed shutter. 
what is kinetoscope? An early motion picture exhibition device. who invented it? William Kennedy Laurie Dickson.
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Kinetoscope [SEP] Introduction
The Kinetoscope is an early motion picture exhibition device. The Kinetoscope was designed for films to be viewed by one individual at a time through a peephole viewer window at the top of the device. The Kinetoscope was not a movie projector, but introduced the basic approach that would become the standard for all cinematic projection before the advent of video, by creating the illusion of movement by conveying a strip of perforated film bearing sequential images over a light source with a high-speed shutter. A process using roll film was first described in a patent application submitted in France and the U.S.