diff --git a/app/models/master_file.rb b/app/models/master_file.rb
index d76ae81e2e..a0ce72f908 100644
--- a/app/models/master_file.rb
+++ b/app/models/master_file.rb
@@ -585,7 +585,7 @@ def create_frame_source_hls_temp_file(offset)
     # Fixes https://github.com/avalonmediasystem/avalon/issues/3474
     target_location = File.basename(details[:location]).split('?')[0]
     target = File.join(Dir.tmpdir, target_location)
-    File.open(target,'wb') { |f| open(details[:location]) { |io| f.write(io.read) } }
+    File.open(target,'wb') { |f| URI.open(details[:location]) { |io| f.write(io.read) } }
     return target, details[:offset]
   end
 
diff --git a/lib/avalon/m3u8_reader.rb b/lib/avalon/m3u8_reader.rb
index addf7ad4a8..ddee653eab 100644
--- a/lib/avalon/m3u8_reader.rb
+++ b/lib/avalon/m3u8_reader.rb
@@ -37,7 +37,7 @@ def initialize(playlist, base = '', recursive: true)
       @base = base
       @playlist = { files: [], playlists: [] }
       tags = {}
-      playlist.each do |l|
+      playlist.each_line do |l|
         line = l.chomp
         if line =~ /^#EXTM3U/
           # ignore
diff --git a/spec/lib/avalon/m3u8_read_spec.rb b/spec/lib/avalon/m3u8_read_spec.rb
index 562749e9bd..02beab4571 100644
--- a/spec/lib/avalon/m3u8_read_spec.rb
+++ b/spec/lib/avalon/m3u8_read_spec.rb
@@ -16,21 +16,84 @@
 require 'avalon/m3u8_reader'
 
 describe Avalon::M3U8Reader do
-  let(:m3u_file)  { File.expand_path('../../../fixtures/The_Fox.mp4.m3u',__FILE__) }
-  let(:m3u)       { Avalon::M3U8Reader.read(m3u_file) }
+  let(:m3u_filename)  { File.expand_path('../../../fixtures/The_Fox.mp4.m3u',__FILE__) }
+  let(:m3u)       { Avalon::M3U8Reader.read(m3u_filename) }
   let(:framespec) { m3u.at(127000) }
 
-  it "should know how many files it has" do
-    expect(m3u.files.length).to eq(23)
+  context 'with a filepath' do
+    it "should know how many files it has" do
+      expect(m3u.files.length).to eq(23)
+    end
+
+    it "should know its duration" do
+      expect(m3u.duration.round(2)).to eq(225.14)
+    end
+
+    it "should be able to locate a frame" do
+      expect(framespec[:location]).to match(%r{/The_Fox.mp4-012.ts$})
+      expect(framespec[:filename]).to eq('The_Fox.mp4-012.ts')
+      expect(framespec[:offset].round(2)).to eq(6818.91)
+    end
+  end
+
+  context 'with a url' do
+    let(:m3u_url) { Rails.application.routes.url_helpers.hls_manifest_master_file_url(id: 1, quality: "auto") }
+    let(:m3u) { Avalon::M3U8Reader.read(m3u_url) }
+
+    before do
+      stub_request(:get, m3u_url).to_return(body: File.read(m3u_filename))
+    end
+
+    it "should know how many files it has" do
+      expect(m3u.files.length).to eq(23)
+    end
+
+    it "should know its duration" do
+      expect(m3u.duration.round(2)).to eq(225.14)
+    end
+
+    it "should be able to locate a frame" do
+      expect(framespec[:location]).to match(%r{/The_Fox.mp4-012.ts$})
+      expect(framespec[:filename]).to eq('The_Fox.mp4-012.ts')
+      expect(framespec[:offset].round(2)).to eq(6818.91)
+    end
   end
 
-  it "should know its duration" do
-    expect(m3u.duration.round(2)).to eq(225.14)
+  context 'with a file' do
+    let(:m3u_file) { File.open(m3u_filename) }
+    let(:m3u) { Avalon::M3U8Reader.read(m3u_file) }
+
+    it "should know how many files it has" do
+      expect(m3u.files.length).to eq(23)
+    end
+
+    it "should know its duration" do
+      expect(m3u.duration.round(2)).to eq(225.14)
+    end
+
+    it "should be able to locate a frame" do
+      expect(framespec[:location]).to match(%r{/The_Fox.mp4-012.ts$})
+      expect(framespec[:filename]).to eq('The_Fox.mp4-012.ts')
+      expect(framespec[:offset].round(2)).to eq(6818.91)
+    end
   end
 
-  it "should be able to locate a frame" do
-    expect(framespec[:location]).to match(%r{/The_Fox.mp4-012.ts$})
-    expect(framespec[:filename]).to eq('The_Fox.mp4-012.ts')
-    expect(framespec[:offset].round(2)).to eq(6818.91)
+  context 'with a string' do
+    let(:m3u_file_contents) { File.read(m3u_filename) }
+    let(:m3u) { Avalon::M3U8Reader.read(m3u_file_contents) }
+
+    it "should know how many files it has" do
+      expect(m3u.files.length).to eq(23)
+    end
+
+    it "should know its duration" do
+      expect(m3u.duration.round(2)).to eq(225.14)
+    end
+
+    it "should be able to locate a frame" do
+      expect(framespec[:location]).to match(%r{/The_Fox.mp4-012.ts$})
+      expect(framespec[:filename]).to eq('The_Fox.mp4-012.ts')
+      expect(framespec[:offset].round(2)).to eq(6818.91)
+    end
   end
 end
diff --git a/spec/models/master_file_spec.rb b/spec/models/master_file_spec.rb
index fd9b236467..da182c0af6 100644
--- a/spec/models/master_file_spec.rb
+++ b/spec/models/master_file_spec.rb
@@ -632,13 +632,24 @@
 
       context 'when derivatives are not accessible' do
         let(:high_derivative_locator) { FileLocator.new(video_master_file.derivatives.where(quality_ssi: 'high').first.absolute_location) }
-        let(:hls_temp_file) { "/tmp/temp_segment.ts" }
+        let(:hls_file) { "temp_segment.ts" }
+        let(:hls_url) { "http://streaming.server.com/path/#{hls_file}" }
+        let(:reader) { double(Avalon::M3U8Reader) }
+        let(:m3u8) { "HLSDATA" }
+
+        before do
+          stub_request(:get, hls_url).to_return(body: m3u8)
+          allow(Avalon::M3U8Reader).to receive(:read).and_return(reader)
+          allow(reader).to receive(:at).and_return({ location: hls_url, filename: hls_file, offset: 0 })
+        end
 
         it 'falls back to HLS' do
-          expect(video_master_file).to receive(:create_frame_source_hls_temp_file).and_return(hls_temp_file)
-          expect(File).to receive(:exist?).with(high_derivative_locator.location).and_return(false)
+          #expect(video_master_file).to receive(:create_frame_source_hls_temp_file).and_return(hls_temp_file)
+          allow(File).to receive(:exist?).and_call_original
+          allow(File).to receive(:exist?).with(high_derivative_locator.location).and_return(false)
           expect(source[:source]).to eq '/tmp/temp_segment.ts'
           expect(source[:non_temp_file]).to eq false
+          expect(File.read(source[:source])).to eq m3u8
         end
       end
     end