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ok, but why would/is all of that making me not hang out with my friends as much? THey can just come over; we can even watch the niche, high-quality movie/screens together
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Because you might not share their niche. I've heard this point brought up before too, that in the past there were so fewer entertainment products available, so people congregated around a few popular ones. But now everyone's attention is fragmented on different things, so even less reason to socialize outside your niche.
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Extremely frustrating. Prices rising have nothing to do with capitalism---resources are scarce and everything always has a price, whether in money or in time or some other resource. Prices were high under communism too---you just paid by waiting in line... or in the case where you just didn't have certain goods, the price was infinite.
I think their chart basically shows how it's both. Increasing quality of digital entertainment and decreasing relative prices both make people stay home more and go out less.
As to the quality point, I'd argue that it's more about horizontal match quality than vertical match quality. A lot of people think movies and games are shittier than before. But there's just so many of them, and much easier to find a niche that satisfies your particular tastes.
Another aspect of increased "quality" is the scientization of addiction that the companies use to keep you hooked on the screen