There's what appears to be a TV in the background that has picture shifts/cuts, and there are a couple people moving around back there, so it's most likely a real background beyond the depth of field somewhere. Shot in someone's house or whatever space they're in... Looks like some funky chandelier in a dining room, someone on a couch, then further back, a kitchen? Who knows.
What wonderspark was trying to tell you is that you don't need to shoot with a green screen to do this. The clip you referenced may very well be one actual recording, using a very shallow depth of field.I know how to film someone on a green screen, and put them at the center with a background of moving people, what I don't have an idea on how to achieve is a blurred background that makes it appear as though the focus is on the individual and the whats behind the subject is blurred - if this is the right way to express it.