Yes, your IFE should have been in working order, and yes, you should be compensated.

However, it is well known that IFE can go down. Rather than sit through a long flight with nothing to do but read the airline magazine it's a really great idea to bring your own IFE on board with you.

I always have my iPad with Kindle books and a Sudoku puzzle book. Rarely, if ever, do I use the airplane IFE.