diff --git a/cmd/api-transcoder/api-transcoder.go b/cmd/api-transcoder/api-transcoder.go
index 85cec7ea..867516d8 100644
--- a/cmd/api-transcoder/api-transcoder.go
+++ b/cmd/api-transcoder/api-transcoder.go
@@ -205,7 +205,7 @@ func transcode(apiKey, apiHost, src, dst string, presets []string, lprofile *liv
 		}
 	}
 	for _, outFile := range outFiles {
-		if err = outFile.Close(); err != nil {
+		if err := outFile.Close(); err != nil {
 			return err
 		}
 	}
diff --git a/internal/testers/segmenter.go b/internal/testers/segmenter.go
index 345ae3a6..e61bfbef 100644
--- a/internal/testers/segmenter.go
+++ b/internal/testers/segmenter.go
@@ -4,7 +4,6 @@ import (
 	"bytes"
 	"context"
 	"errors"
-	"fmt"
 	"io"
 	"time"
 
@@ -34,9 +33,8 @@ func StartSegmentingR(ctx context.Context, reader io.ReadSeekCloser, stopAtFileE
 		glog.Errorf("avutil.OpenRC err=%v", err)
 		return err
 	}
-	go segmentingLoop(ctx, "", inFile, stopAtFileEnd, stopAfter, skipFirst, segLen, useWallTime, out)
-
-	return err
+	startSegmentingLoop(ctx, "", inFile, stopAtFileEnd, stopAfter, skipFirst, segLen, useWallTime, out)
+	return nil
 }
 
 func StartSegmenting(ctx context.Context, fileName string, stopAtFileEnd bool, stopAfter, skipFirst, segLen time.Duration,
@@ -44,11 +42,11 @@ func StartSegmenting(ctx context.Context, fileName string, stopAtFileEnd bool, s
 	glog.Infof("Starting segmenting file %s", fileName)
 	inFile, err := avutil.Open(fileName)
 	if err != nil {
-		glog.Fatal(err)
+		glog.Errorf("avutil.OpenRC err=%v", err)
+		return err
 	}
-	go segmentingLoop(ctx, fileName, inFile, stopAtFileEnd, stopAfter, skipFirst, segLen, useWallTime, out)
-
-	return err
+	startSegmentingLoop(ctx, fileName, inFile, stopAtFileEnd, stopAfter, skipFirst, segLen, useWallTime, out)
+	return nil
 }
 
 func createInMemoryTSMuxer() (av.Muxer, *bytes.Buffer) {
@@ -97,12 +95,28 @@ func (wt *Walltime) ModifyPacket(pkt *av.Packet, streams []av.CodecData, videoid
 	return
 }
 
-func segmentingLoop(ctx context.Context, fileName string, inFileReal av.DemuxCloser, stopAtFileEnd bool, stopAfter, skipFirst, segLen time.Duration,
+func startSegmentingLoop(ctx context.Context, fileName string, inFileReal av.DemuxCloser, stopAtFileEnd bool, stopAfter, skipFirst, segLen time.Duration,
 	useWallTime bool, out chan<- *model.HlsSegment) {
+	go func() {
+		defer close(out)
+		err := segmentingLoop(ctx, fileName, inFileReal, stopAtFileEnd, stopAfter, skipFirst, segLen, useWallTime, out)
+		if err != nil {
+			glog.Errorf("Error in segmenting loop. err=%+v", err)
+			select {
+			case out <- &model.HlsSegment{Err: err}:
+			case <-ctx.Done():
+			}
+		}
+	}()
+}
+
+func segmentingLoop(ctx context.Context, fileName string, inFileReal av.DemuxCloser,
+	stopAtFileEnd bool, stopAfter, skipFirst, segLen time.Duration,
+	useWallTime bool, out chan<- *model.HlsSegment) error {
 
 	var err error
 	var streams []av.CodecData
-	var videoidx, audioidx int8
+	streamTypes := map[int8]string{}
 
 	ts := &timeShifter{}
 	filters := pktque.Filters{ts, &pktque.FixTime{MakeIncrement: true}}
@@ -111,22 +125,28 @@ func segmentingLoop(ctx context.Context, fileName string, inFileReal av.DemuxClo
 	}
 	inFile := &pktque.FilterDemuxer{Demuxer: inFileReal, Filter: filters}
 	if streams, err = inFile.Streams(); err != nil {
-		msg := fmt.Sprintf("Can't get info about file: '%+v', isNoAudio %v isNoVideo %v", err, errors.Is(err, jerrors.ErrNoAudioInfoFound), errors.Is(err, jerrors.ErrNoVideoInfoFound))
-		if !(errors.Is(err, jerrors.ErrNoAudioInfoFound) || errors.Is(err, jerrors.ErrNoVideoInfoFound)) {
-			glog.Fatal(msg)
-		}
-		fmt.Println(msg)
-		panic(msg)
+		glog.Errorf("Can't get info about file err=%q, isNoAudio=%v isNoVideo=%v stack=%+v", err, errors.Is(err, jerrors.ErrNoAudioInfoFound), errors.Is(err, jerrors.ErrNoVideoInfoFound), err)
+		return err
 	}
 	for i, st := range streams {
-		if st.Type().IsAudio() {
-			audioidx = int8(i)
+		codecType := "unknown"
+		if codec := st.Type(); codec.IsAudio() {
+			codecType = "audio"
+		} else if codec.IsVideo() {
+			codecType = "video"
 		}
-		if st.Type().IsVideo() {
-			videoidx = int8(i)
+		streamTypes[int8(i)] = codecType
+	}
+	glog.V(model.VERBOSE).Infof("Stream types=%+v", streamTypes)
+
+	sendSegment := func(seg *model.HlsSegment) bool {
+		select {
+		case out <- &model.HlsSegment{Err: err}:
+			return true
+		case <-ctx.Done():
+			return false
 		}
 	}
-	glog.V(model.VERBOSE).Infof("Video stream index %d, audio stream index %d\n", videoidx, audioidx)
 
 	seqNo := 0
 	// var curPTS time.Duration
@@ -142,12 +162,12 @@ func segmentingLoop(ctx context.Context, fileName string, inFileReal av.DemuxClo
 		segFile, buf := createInMemoryTSMuxer()
 		err = segFile.WriteHeader(streams)
 		if err != nil {
-			glog.Fatal(err)
+			return err
 		}
 		if firstFramePacket != nil {
 			err = segFile.WritePacket(*firstFramePacket)
 			if err != nil {
-				glog.Fatal(err)
+				return err
 			}
 			prevPTS = firstFramePacket.Time
 			firstFramePacket = nil
@@ -158,7 +178,8 @@ func segmentingLoop(ctx context.Context, fileName string, inFileReal av.DemuxClo
 		for {
 			select {
 			case <-ctx.Done():
-				return
+				// don't return ctx.Err() as that would send the error in the out channel
+				return nil
 			default:
 			}
 			pkt, rerr = inFile.ReadPacket()
@@ -169,7 +190,7 @@ func segmentingLoop(ctx context.Context, fileName string, inFileReal av.DemuxClo
 					}
 					break
 				}
-				glog.Fatal(rerr)
+				return rerr
 			}
 			lastPacket = pkt
 
@@ -182,7 +203,7 @@ func segmentingLoop(ctx context.Context, fileName string, inFileReal av.DemuxClo
 			// This matches segmenter algorithm used in ffmpeg
 			if pkt.IsKeyFrame && pkt.Time >= time.Duration(seqNo+1)*segLen {
 				firstFramePacket = &pkt
-				glog.V(model.VERBOSE).Infof("Packet Is Keyframe %v Is Audio %v Is Video %v PTS %s sinc prev %s seqNo %d\n", pkt.IsKeyFrame, pkt.Idx == audioidx, pkt.Idx == videoidx, pkt.Time,
+				glog.V(model.VERBOSE).Infof("Packet isKeyframe=%v codecType=%v PTS=%s sincPrev=%s seqNo=%d", pkt.IsKeyFrame, streamTypes[pkt.Idx], pkt.Time,
 					pkt.Time-prevPTS, seqNo+1)
 				// prevPTS = pkt.Time
 				curDur = pkt.Time - prevPTS
@@ -190,12 +211,12 @@ func segmentingLoop(ctx context.Context, fileName string, inFileReal av.DemuxClo
 			}
 			err = segFile.WritePacket(pkt)
 			if err != nil {
-				glog.Fatal(err)
+				return err
 			}
 		}
 		err = segFile.WriteTrailer()
 		if err != nil {
-			glog.Fatal(err)
+			return err
 		}
 		if rerr == io.EOF && stopAfter > 0 && (prevPTS+curDur) < stopAfter && len(fileName) > 0 {
 			// re-open same file and stream it again
@@ -203,8 +224,9 @@ func segmentingLoop(ctx context.Context, fileName string, inFileReal av.DemuxClo
 			ts.timeShift = lastPacket.Time + 30*time.Millisecond
 			inf, err := avutil.Open(fileName)
 			if err != nil {
-				glog.Fatal(err)
+				return err
 			}
+			defer inf.Close()
 			inFile.Demuxer = inf
 			// rs.counter.currentSegments = 0
 			inFile.Streams()
@@ -221,7 +243,9 @@ func segmentingLoop(ctx context.Context, fileName string, inFileReal av.DemuxClo
 					Duration: curDur,
 					Data:     buf.Bytes(),
 				}
-				out <- hlsSeg
+				if !sendSegment(hlsSeg) {
+					return nil
+				}
 				prevPTS = lastPacket.Time
 			} else {
 				seqNo--
@@ -241,7 +265,9 @@ func segmentingLoop(ctx context.Context, fileName string, inFileReal av.DemuxClo
 						Duration: curDur,
 						Data:     buf.Bytes(),
 					}
-					out <- hlsSeg
+					if !sendSegment(hlsSeg) {
+						return nil
+					}
 					sent = 0
 				}
 			}
@@ -257,7 +283,9 @@ func segmentingLoop(ctx context.Context, fileName string, inFileReal av.DemuxClo
 					SeqNo: seqNo + 1 + sent,
 					Pts:   prevPTS + curDur,
 				}
-				out <- hlsSeg
+				if !sendSegment(hlsSeg) {
+					return nil
+				}
 				break
 			}
 		}
@@ -267,10 +295,12 @@ func segmentingLoop(ctx context.Context, fileName string, inFileReal av.DemuxClo
 				SeqNo: seqNo + 1,
 				Pts:   prevPTS + curDur,
 			}
-			out <- hlsSeg
+			if !sendSegment(hlsSeg) {
+				return nil
+			}
 			break
 		}
 		seqNo++
 	}
-	return
+	return nil
 }