Digital stories are short, multimedia presentations that can include images, video, narration, animations, music and other artwork. There are lots of different tools (free and paid) that can be used to create digital stories:

Animoto (online)

Blabberize (online)

GoAnimate (online)

iMovie (Apple Mac)

PuppetPals (iPad)

Reel Director (iPad)

Voki (online)

Windows Photostory (Microsoft)

Windows Movie Maker (Microsoft)

Links to more information about creating your own Digital stories:
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Youth Central - Digital Stories
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Digital Story Telling