I was wondering if anyone else had this issue and what they think about it. With the new dashboard every time I want to watch a movie(xvid format) I get this message saying I can not watch unless I'm connected to xbox live. Since when?!!! I'm kind of baffled at this. I don't usually sign in with the account that connects to xbox live I haven't tried using that account offline to see what happens but this concerns me a little but kind of feels like its breaking some privacy laws. What do you think?
If you have gotten a new xbox you will have to transfer your licenses to it, to be able to use dlc without being signed in. The optional media update is considered dlc. http://www.xbox.com/en-US/Support/LicenseMigration/Home
Yea its pretty stupid, but it did happen on the old dash too. like the guy above me just said it happens when you switch consoles usually. when i got banned last year i traded wit ha friend that didnt play onlive and now if i am offline it tells me i cant watch vids. I would have already swapped my license around as suggested but they only let you do it once a year i think and i had just done it before i got banned which sucked but o well. games are more important anyway i can always figure another way to watch vids.