diff --git a/lbrynet/lbrynet_daemon/DaemonServer.py b/lbrynet/lbrynet_daemon/DaemonServer.py
index 230f152ee..80882acf1 100644
--- a/lbrynet/lbrynet_daemon/DaemonServer.py
+++ b/lbrynet/lbrynet_daemon/DaemonServer.py
@@ -11,7 +11,7 @@ import cgi
 
 from appdirs import user_data_dir
 from twisted.web import server, static, resource
-from twisted.internet import abstract, defer, interfaces, error, reactor, threads
+from twisted.internet import abstract, defer, interfaces, error, reactor, task, threads
 
 from zope.interface import implementer
 
@@ -261,6 +261,7 @@ class EncryptedFileStreamer(object):
         self._file = open(path, 'rb')
         self._stream = stream
         self._file_manager = file_manager
+        self._headers_sent = False
 
         self._running = True
 
@@ -273,29 +274,35 @@ class EncryptedFileStreamer(object):
         self._deferred.addCallback(_set_content_length_header)
         self._deferred.addCallback(lambda _: self.resumeProducing())
 
+    def _check_for_new_data(self):
+        def _recurse_or_stop(stream_status):
+            if not self._running:
+                return
+
+            if stream_status != ManagedLBRYFileDownloader.STATUS_FINISHED:
+                self._deferred.addCallback(lambda _: task.deferLater(reactor, self.new_data_check_interval, self._check_for_new_data))
+            else:
+                self.stopProducing()
+
+        if not self._running:
+            return
+
+        data = self._file.read(self.bufferSize)
+        if data:
+            self._request.write(data)
+            self._deferred.addCallback(lambda _: task.deferLater(reactor, self.stream_interval, self._check_for_new_data))
+        else:
+            # We've written all the bytes currently in the file, but we may
+            # still be downloading, so check file status to see if we're done.
+            self._deferred.addCallback(lambda _: self._file_manager.get_lbry_file_status(self._stream))
+            self._deferred.addCallback(_recurse_or_stop)
+
     def pauseProducing(self):
         self._running = False
-        return defer.succeed(None)
 
     def resumeProducing(self):
-        def _check_for_new_data():
-            if not self._running:
-                return defer.succeed(None)
-
-            data = self._file.read(self.bufferSize)
-            if data:
-                self._request.write(data)
-                self._deferred.addCallback(lambda _: threads.deferToThread(reactor.callLater, self.stream_interval, _check_for_new_data))
-            else:
-                status = self._file_manager.get_lbry_file_status(self._stream)
-                if status != ManagedLBRYFileDownloader.STATUS_FINISHED:
-                    self._deferred.addCallback(lambda _: threads.deferToThread(reactor.callLater, self.new_data_check_interval, _check_for_new_data))
-                else:
-                    self.stopProducing()
-
         self._running = True
-        self._deferred.addCallback(lambda _: _check_for_new_data())
-        return defer.succeed(None)
+        self._check_for_new_data()
 
     def stopProducing(self):
         self._running = False
@@ -305,7 +312,6 @@ class EncryptedFileStreamer(object):
         self._deferred.cancel()
         self._request.finish()
         self._request.unregisterProducer()
-        return defer.succeed(None)
 
 
 class HostedEncryptedFile(resource.Resource):
@@ -317,8 +323,8 @@ class HostedEncryptedFile(resource.Resource):
         path = os.path.join(self._api.download_directory, stream.file_name)
 
         producer = EncryptedFileStreamer(request, path, stream, self._api.lbry_file_manager)
-        d = defer.Deferred(None)
-        d.addCallback(lambda _: request.registerProducer(producer, streaming=True))
+        request.registerProducer(producer, streaming=True)
+
         request.notifyFinish().addCallback(lambda _: producer.stopProducing())
         request.notifyFinish().addErrback(self._responseFailed, d)
         return d