How to fix an Xbox 360 which freezes on the Xbox 360 logo when booting games?

I have Xbox 360 Arcade. I connected all the cables properly, and to show that everything is working until this point, I get the following on my TV screen after connecting everything and starting the console:

Now, as I insert the disk and close the tray – a disc which used to run on this same Xbox 7 years ago without any technical problems – First it displays "reading", then the screen gets black for few seconds and finally I get this on my TV screen:

And then nothing happens, it stays like this as long as we please. I tried cleaning the tray, my disc is also clean and doesn’t have scratches. As I touch my console I get the vibration which advertises that disc is running (and hence reading machinery of XBOX is not faulty), the problem seem to be on displaying the things (I’m no expert).

How can I fix it? None of the discs are working.