Interesting read here about the security side of Mega.
You could rip a DVD, encrypt it and upload it. You can then distribute the file name and key to anyone that wants to download it and unencrypt it. Mega can say “It’s an encrypted file so we have no idea what it is. Not our problem as we don’t know the key.”.
Even though it makes cloud storage more secure, it’ll be used for naughty things and will be busted. Of course, Google, Microsoft or one of the other big boys will launch something similar and won’t be touched.