IMO Continental does owe compensation for broken IFE equipment because they use it as a reason you should fly CO over other carriers in their marketing.

2 years ago I flew EZE-IAH-EWR in Y with Mrs. Keba and Jr. Keba. IFE was non functional for both legs on the 767. All three of us were/are silver eilte and after writing a letter we received 3x $25 Amex gift cards so we could go out to the movies. It was not what I was expecting but I was satisfied. In our case IFE was not working on the entire plane so switching seats was not an option.

Keba