"like reading ghost stories" and "watch scary films" are not parallel. As Astralbee has said, both verbs in the same sentence have to match.
I borrow Astralbee's sentences and bracket the phrases to illustrate.
'People like (reading ghost stories) and (watching scary films).'
'People like to (read ghost stories) and (watch scary films).'
'People like' and 'People like to' have been omitted after the 'and' in 1) and 2), respectively. Re-inserting them shows that the sentences are still correct.
On the other hand, re-inserting 'People like' into your original example1 will show the error.