Its a known feature of XBox Live. For example, I have a young son. He has his own XBox Live account and we have multiple XBoxes throughout the house. When I buy a game, he is able to play it if that XBox is my "home" XBox. Likewise I can play his games if the XBox that I am using is designated as his "home" XBox. I think they just don't want you to share with ramdom users around the country.
See this XBox article: http://support.xbox.com/en-US/games/game-setup/my-home-xbox
The first time you sign in on an Xbox One and save your password, that console becomes your home Xbox. The My home Xbox setting allows you to do the following: