The way it used to work... you would set your cruise altitude in AAS and AAS would then know when to start showing movies and serve refreshments.
But there was a nasty bug that surfaced not long ago. If the movies web site was down it would cause AAS to hang when you reached the cruise altitude. There were more and more problems with the movies web site, and subsequently more and more problems experienced with AAS.
The temporary fix was to allow pilots to set cruise altitudes in AAS to 60,000 feet or above. Since there are no longer any commercial aircraft that fly that high (with the retirement of the Concorde) AAS will never start showing movies... and AAS will never hang because the movie web site is down.
Another key point is that AAS has no knowledge of the cruise altitude you set in FSX. AAS only knows the cruise altitude you set in AAS (i.e., 60,000; 60,500; 61,000).
The long term plan is to go back and fix the movie issue in AAS. It is on the list of updates. There are higher priority issues ahead of fixing movies.
I hope this helps explain how and why it works like it does.