Cannot Play Video Files on Xbox 360 Offline

This is something that was a bit of a pain...Why could I not play my video files on my Xbox 360 when I lost connection the internet? It seemed like a ridiculous restriction to have. But, supposedly all it takes is to transfer the license from your old Xbox to your new one (you probably have a new replacement Xbox, for the old one that broke down)...And voila you can play any video files on your Xbox 360 whether it's online or not.