Animoto allows users to create virtual photo albums set to music. It provides templates to guide users through a 6 step process: 1) Sign up, 2) Choose a theme, 3) Add photos and videos, 4) Add text and styles, 5) Save the completed album, 6) Share the album. Users can purchase subscriptions for longer albums or create free 30 second albums. The document provides instructions for uploading custom photos and music to personalize the album.