That looks like a driver issue. Either you need to install some drivers for that new screen, or your gpu has failed and your computer is using your logicboard to output video.
the redlight can also happen when there's no driver insalled (for example, if you install bootcamp and don't install the audio drivers) so it may as well be a software problem too. It also happens as soon as you plug an headphone out of the jack (while it's switching to the speakers again) Do you experience any problems when using the speaker too?