That's really the only reasonable response to this clip.
So there was this British show in the 60s called The Prisoner. It was about an ex-spy[1] who quits his job. He gets home and starts to pack, but ends up being kidnapped and forced to live in a bizarre village where everyone who isn't him wears brightly coloured clothes & has numbers instead of names (he's known as Number 6). He's regularly subjected to strange trials (most mental, some physical) attempting to break him & find out why he quit his job. Anyway, escapees from the village are chased after by Rover, the giant white balloon from that clip. No, I don't know what they were on when they came up with it. The show was remade recently by AMC, with Jim Caviezel and Ian McKellen. It's been referenced on The Simpsons at least twice, with the original theme music being quoted.
There was also an entire episode of ReBoot (in the 3rd season, of course) that was based on it, which is pretty surprising for a kid's show. [1] Ex-spy? Maybe. I'm not sure it was ever explicitly stated.