TorrentFreak is reporting that many popular file hosting services are drastically limiting the services they offer or are just shutting down.
Filesonic, one of the biggest file sharing sites on the net, removed its rewards program and revoked access to files from third parties. In short, you can only download files that you uploaded yourself.
Fileserve, another major player, ended its reward program as well. It has also banned all third party downloads.
Users of Fileserve are reporting to TorrentFreak that they are having their files deleted and accounts banned for violating the site’s terms of service.
Uploaded.to took a more direct approach and banned all U.S. ISPs from accessing their Web site. This could be a move to remove itself from U.S. jurisdiction as the government shut down MegaUpload for having a server based in the U.S.
The major reason for all of this is that one of the reasons behind MegaUpload's indictment was their rewards program that fed them money over the sharing of copyrighted files. File hosting services, even if they only serve legitimate users with business or persona files, don’t want to be considered targets by the federal government.