HLS encryption doesn't work

[gholol]

I'm trying to make use of HLS encryption but it's not working

I've added an entry in my nginx.conf:

location /vod {
vod hls;
vod_mode local;
vod_secret_key "sHFSE7y4-$vod_filepath";
vod_response_cache response_cache 12m;

root /home/mainframe/www/VOD;

}

Now when i go to

wget http://localhost/vod/app.mp4/index.m3u8 -O-

I'm getting this m3y8 file:

EXTM3U

EXT-X-TARGETDURATION:10

EXT-X-ALLOW-CACHE:YES

EXT-X-PLAYLIST-TYPE:VOD

EXT-X-KEY:METHOD=AES-128,URI="http://pluge/vod/app.mp4/encryption.key"

EXT-X-VERSION:3

EXT-X-MEDIA-SEQUENCE:1

EXTINF:10.000,

http://pluge/vod/app.mp4/seg-1-v1-a1.ts

EXTINF:10.000,

http://pluge/vod/app.mp4/seg-2-v1-a1.ts

EXTINF:10.000,

http://pluge/vod/app.mp4/seg-3-v1-a1.ts

... and so on, etc

There's no #EXT-X-KEY field and I can just open this output in VLC without any issues. So it's not even encrypted?

EDIT: I'm simply retarded