My guess is that the owner of the Xbox One where the game was played was not the owner of the game that was played.
As with the Xbox 360, if the owner of the title is not signed in (lost connection to Xbox LIVE) the game will not play or reverts to a demo mode (in the case of the Xbox 360).
EDIT: Also, just so everyone is clear, the PS4 uses the same exact DRM technology that the Xbox One uses. Sony licensed Microsoft's DRM technology from them late last generation. Sony and Microsoft have the same exact DRM technology, hence why Sony could have implemented what Microsoft proposed, but which both companies backed away from.
The benefit of using a common DRM scheme (regardless of what constraints if any are placed on the content) is that services offered by various companies could easily be adapted for one console or the other. So, if Microsoft helped Redbox with an online rental scheme for Xbox games, Sony could easily get involved with it for PS4 games.
