how did he do this!

There are a lot of ways to do it. You can make a mask with a gradient circle; you can use a feathered bezier mask or cookie cutter . . . lots of other ways, too.
 
That effect is called a vignette, and is usually caused by the lens. The following link has a great description and visuals of why this can occur: http://www.vanwalree.com/optics/vignetting.html

An easy way to achieve this effect is by adding it in post. Stu Maschwitz's book The DV Rebel's Guide comes with a great little script for After Effects called "Rebel CC" that has presets for a ton of really great effects, including adding a vignette. You can download the presets at the below link.

http://rebelsguide.com/DV%20Rebel%27s%20Guide/Rebel%20CC.html
 
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