It's not actually magic. The video demonstrates the brains attentional limitations. We believe we experience the world as a series of snapshots, but really we build a scene piecemeal and then presume it's endurance. This is so we can focus our resources on higher cognition, like following along with a magic trick.
It's a neat video. I thought I'd share it.

Edit: okay. It turns out I don't know how to embed videos. Here's the link.