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DRM is Digital Rights Management... it means you didn't buy the actual movie/game, just a license or "right" to play that movie or game in certain situations.
Like, you didn't buy Spider-Man 3, you bought a copy of it on a DVD you are only allowed to watch in a DVD player without charging anyone else money to see it.
DRM is attached to everything you buy from the Xbox Marketplace, it "brands" a game to your system. If you play something you bought on a different system you have to be online and signed into your profile to prove it's the person who paid for the content, not someone else. You didn't really buy the game entirely, you bought the right to play it with the profile you used.
In any case, as Ruined said, if you didn't buy anything for your 360 through the marketplace it doesn't really matter, there are no DRM issues to worry about.
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