-        for i, frag_url in enumerate(fragment_urls):
-            frag_filename = '%s-Frag%d' % (ctx['tmpfilename'], i)
-            success = ctx['dl'].download(frag_filename, {'url': frag_url})
-            if not success:
-                return False
-            down, frag_sanitized = sanitize_open(frag_filename, 'rb')
-            ctx['dest_stream'].write(down.read())
-            down.close()
-            frags_filenames.append(frag_sanitized)
+        for line in s.splitlines():
+            line = line.strip()
+            if line:
+                if not line.startswith('#'):
+                    frag_url = (
+                        line
+                        if re.match(r'^https?://', line)
+                        else compat_urlparse.urljoin(man_url, line))
+                    frag_filename = '%s-Frag%d' % (ctx['tmpfilename'], i)
+                    success = ctx['dl'].download(frag_filename, {'url': frag_url})
+                    if not success:
+                        return False
+                    down, frag_sanitized = sanitize_open(frag_filename, 'rb')
+                    frag_content = down.read()
+                    down.close()
+                    if decrypt_info['METHOD'] == 'AES-128':
+                        iv = decrypt_info.get('IV') or compat_struct_pack('>8xq', media_sequence)
+                        frag_content = AES.new(
+                            decrypt_info['KEY'], AES.MODE_CBC, iv).decrypt(frag_content)
+                    ctx['dest_stream'].write(frag_content)
+                    frags_filenames.append(frag_sanitized)
+                    # We only download the first fragment during the test
+                    if self.params.get('test', False):
+                        break
+                    i += 1
+                    media_sequence += 1
+                elif line.startswith('#EXT-X-KEY'):
+                    decrypt_info = parse_m3u8_attributes(line[11:])
+                    if decrypt_info['METHOD'] == 'AES-128':
+                        if 'IV' in decrypt_info:
+                            decrypt_info['IV'] = binascii.unhexlify(decrypt_info['IV'][2:])
+                        if not re.match(r'^https?://', decrypt_info['URI']):
+                            decrypt_info['URI'] = compat_urlparse.urljoin(
+                                man_url, decrypt_info['URI'])
+                        decrypt_info['KEY'] = self.ydl.urlopen(decrypt_info['URI']).read()
+                elif line.startswith('#EXT-X-MEDIA-SEQUENCE'):
+                    media_sequence = int(line[22:])