diff --git a/.travis.yml b/.travis.yml
index be00f989290..0461d182232 100644
--- a/.travis.yml
+++ b/.travis.yml
@@ -1,8 +1,18 @@
 sudo: false
+dist: xenial
 addons:
   apt:
+    sources:
+      - sourceline: "ppa:jonathonf/ffmpeg-4"
     packages:
       - libudev-dev
+      - libavformat-dev
+      - libavcodec-dev
+      - libavdevice-dev
+      - libavutil-dev
+      - libswscale-dev
+      - libswresample-dev
+      - libavfilter-dev
 matrix:
   fast_finish: true
   include:
@@ -19,15 +29,12 @@ matrix:
       env: TOXENV=py36
     - python: "3.7"
       env: TOXENV=py37
-      dist: xenial
     - python: "3.8-dev"
       env: TOXENV=py38
-      dist: xenial
       if: branch = dev AND type = push
   allow_failures:
     - python: "3.8-dev"
       env: TOXENV=py38
-      dist: xenial
 
 cache:
   directories:
diff --git a/homeassistant/components/camera/__init__.py b/homeassistant/components/camera/__init__.py
index 474f9594610..48dd355ebd6 100644
--- a/homeassistant/components/camera/__init__.py
+++ b/homeassistant/components/camera/__init__.py
@@ -28,6 +28,12 @@ from homeassistant.helpers.entity_component import EntityComponent
 from homeassistant.helpers.config_validation import (  # noqa
     PLATFORM_SCHEMA, PLATFORM_SCHEMA_BASE)
 from homeassistant.components.http import HomeAssistantView, KEY_AUTHENTICATED
+from homeassistant.components.media_player.const import (
+    ATTR_MEDIA_CONTENT_ID, ATTR_MEDIA_CONTENT_TYPE,
+    SERVICE_PLAY_MEDIA, DOMAIN as DOMAIN_MP)
+from homeassistant.components.stream import request_stream
+from homeassistant.components.stream.const import (
+    OUTPUT_FORMATS, FORMAT_CONTENT_TYPE)
 from homeassistant.components import websocket_api
 import homeassistant.helpers.config_validation as cv
 
@@ -39,11 +45,14 @@ _LOGGER = logging.getLogger(__name__)
 SERVICE_ENABLE_MOTION = 'enable_motion_detection'
 SERVICE_DISABLE_MOTION = 'disable_motion_detection'
 SERVICE_SNAPSHOT = 'snapshot'
+SERVICE_PLAY_STREAM = 'play_stream'
 
 SCAN_INTERVAL = timedelta(seconds=30)
 ENTITY_ID_FORMAT = DOMAIN + '.{}'
 
 ATTR_FILENAME = 'filename'
+ATTR_MEDIA_PLAYER = 'media_player'
+ATTR_FORMAT = 'format'
 
 STATE_RECORDING = 'recording'
 STATE_STREAMING = 'streaming'
@@ -69,6 +78,11 @@ CAMERA_SERVICE_SNAPSHOT = CAMERA_SERVICE_SCHEMA.extend({
     vol.Required(ATTR_FILENAME): cv.template
 })
 
+CAMERA_SERVICE_PLAY_STREAM = CAMERA_SERVICE_SCHEMA.extend({
+    vol.Required(ATTR_MEDIA_PLAYER): cv.entities_domain(DOMAIN_MP),
+    vol.Optional(ATTR_FORMAT, default='hls'): vol.In(OUTPUT_FORMATS),
+})
+
 WS_TYPE_CAMERA_THUMBNAIL = 'camera_thumbnail'
 SCHEMA_WS_CAMERA_THUMBNAIL = websocket_api.BASE_COMMAND_MESSAGE_SCHEMA.extend({
     vol.Required('type'): WS_TYPE_CAMERA_THUMBNAIL,
@@ -176,6 +190,7 @@ async def async_setup(hass, config):
         WS_TYPE_CAMERA_THUMBNAIL, websocket_camera_thumbnail,
         SCHEMA_WS_CAMERA_THUMBNAIL
     )
+    hass.components.websocket_api.async_register_command(ws_camera_stream)
 
     await component.async_setup(config)
 
@@ -209,6 +224,10 @@ async def async_setup(hass, config):
         SERVICE_SNAPSHOT, CAMERA_SERVICE_SNAPSHOT,
         async_handle_snapshot_service
     )
+    component.async_register_entity_service(
+        SERVICE_PLAY_STREAM, CAMERA_SERVICE_PLAY_STREAM,
+        async_handle_play_stream_service
+    )
 
     return True
 
@@ -273,6 +292,11 @@ class Camera(Entity):
         """Return the interval between frames of the mjpeg stream."""
         return 0.5
 
+    @property
+    def stream_source(self):
+        """Return the source of the stream."""
+        return None
+
     def camera_image(self):
         """Return bytes of camera image."""
         raise NotImplementedError()
@@ -473,6 +497,33 @@ async def websocket_camera_thumbnail(hass, connection, msg):
             msg['id'], 'image_fetch_failed', 'Unable to fetch image'))
 
 
+@websocket_api.async_response
+@websocket_api.websocket_command({
+    vol.Required('type'): 'camera/stream',
+    vol.Required('entity_id'): cv.entity_id,
+    vol.Optional('format', default='hls'): vol.In(OUTPUT_FORMATS),
+})
+async def ws_camera_stream(hass, connection, msg):
+    """Handle get camera stream websocket command.
+
+    Async friendly.
+    """
+    try:
+        camera = _get_camera_from_entity_id(hass, msg['entity_id'])
+
+        if not camera.stream_source:
+            raise HomeAssistantError("{} does not support play stream service"
+                                     .format(camera.entity_id))
+
+        fmt = msg['format']
+        url = request_stream(hass, camera.stream_source, fmt=fmt)
+        connection.send_result(msg['id'], {'url': url})
+    except HomeAssistantError as ex:
+        _LOGGER.error(ex)
+        connection.send_error(
+            msg['id'], 'start_stream_failed', str(ex))
+
+
 async def async_handle_snapshot_service(camera, service):
     """Handle snapshot services calls."""
     hass = camera.hass
@@ -500,3 +551,25 @@ async def async_handle_snapshot_service(camera, service):
             _write_image, snapshot_file, image)
     except OSError as err:
         _LOGGER.error("Can't write image to file: %s", err)
+
+
+async def async_handle_play_stream_service(camera, service_call):
+    """Handle play stream services calls."""
+    if not camera.stream_source:
+        raise HomeAssistantError("{} does not support play stream service"
+                                 .format(camera.entity_id))
+
+    hass = camera.hass
+    fmt = service_call.data[ATTR_FORMAT]
+    entity_ids = service_call.data[ATTR_MEDIA_PLAYER]
+
+    url = request_stream(hass, camera.stream_source, fmt=fmt)
+    data = {
+        ATTR_ENTITY_ID: entity_ids,
+        ATTR_MEDIA_CONTENT_ID: url,
+        ATTR_MEDIA_CONTENT_TYPE: FORMAT_CONTENT_TYPE[fmt]
+    }
+
+    await hass.services.async_call(
+        DOMAIN_MP, SERVICE_PLAY_MEDIA, data,
+        blocking=True, context=service_call.context)
diff --git a/homeassistant/components/camera/ffmpeg.py b/homeassistant/components/camera/ffmpeg.py
index db9e73f3e1b..83ffdd499e9 100644
--- a/homeassistant/components/camera/ffmpeg.py
+++ b/homeassistant/components/camera/ffmpeg.py
@@ -76,3 +76,8 @@ class FFmpegCamera(Camera):
     def name(self):
         """Return the name of this camera."""
         return self._name
+
+    @property
+    def stream_source(self):
+        """Return the source of the stream."""
+        return self._input
diff --git a/homeassistant/components/camera/onvif.py b/homeassistant/components/camera/onvif.py
index da0bae7c50b..b0bd029a80c 100644
--- a/homeassistant/components/camera/onvif.py
+++ b/homeassistant/components/camera/onvif.py
@@ -230,3 +230,8 @@ class ONVIFHassCamera(Camera):
     def name(self):
         """Return the name of this camera."""
         return self._name
+
+    @property
+    def stream_source(self):
+        """Return the source of the stream."""
+        return self._input
diff --git a/homeassistant/components/camera/services.yaml b/homeassistant/components/camera/services.yaml
index 1cae5baf1cf..ec00ce3ef5c 100644
--- a/homeassistant/components/camera/services.yaml
+++ b/homeassistant/components/camera/services.yaml
@@ -38,6 +38,22 @@ snapshot:
       description: Template of a Filename. Variable is entity_id.
       example: '/tmp/snapshot_{{ entity_id }}'
 
+play_stream:
+  description: Play camera stream on supported media player.
+  fields:
+    entity_id:
+      description: Name(s) of entities to stream from.
+      example: 'camera.living_room_camera'
+    media_player:
+      description: Name(s) of media player to stream to.
+      example: 'media_player.living_room_tv'
+    format:
+      description: (Optional) Stream format supported by media player.
+      example: 'hls'
+    keepalive:
+      description: (Optional) Keep the stream worker alive for fast access.
+      example: 'true'
+
 local_file_update_file_path:
   description: Update the file_path for a local_file camera.
   fields:
diff --git a/homeassistant/components/stream/__init__.py b/homeassistant/components/stream/__init__.py
new file mode 100644
index 00000000000..5a4b1ade96d
--- /dev/null
+++ b/homeassistant/components/stream/__init__.py
@@ -0,0 +1,153 @@
+"""
+Provide functionality to stream video source.
+
+For more details about this component, please refer to the documentation at
+https://home-assistant.io/components/stream/
+"""
+import logging
+import threading
+
+import voluptuous as vol
+
+from homeassistant.auth.util import generate_secret
+from homeassistant.const import EVENT_HOMEASSISTANT_STOP
+from homeassistant.core import callback
+from homeassistant.exceptions import HomeAssistantError
+from homeassistant.loader import bind_hass
+
+from .const import DOMAIN, ATTR_STREAMS, ATTR_ENDPOINTS
+from .core import PROVIDERS
+from .worker import stream_worker
+from .hls import async_setup_hls
+
+REQUIREMENTS = ['av==6.1.2']
+
+_LOGGER = logging.getLogger(__name__)
+
+DEPENDENCIES = ['http']
+
+CONFIG_SCHEMA = vol.Schema({
+    DOMAIN: vol.Schema({}),
+}, extra=vol.ALLOW_EXTRA)
+
+# Set log level to error for libav
+logging.getLogger('libav').setLevel(logging.ERROR)
+
+
+@bind_hass
+def request_stream(hass, stream_source, *, fmt='hls',
+                   keepalive=False, options=None):
+    """Set up stream with token."""
+    if DOMAIN not in hass.config.components:
+        raise HomeAssistantError("Stream component is not set up.")
+
+    if options is None:
+        options = {}
+
+    try:
+        streams = hass.data[DOMAIN][ATTR_STREAMS]
+        stream = streams.get(stream_source)
+        if not stream:
+            stream = Stream(hass, stream_source,
+                            options=options, keepalive=keepalive)
+            streams[stream_source] = stream
+
+        # Add provider
+        stream.add_provider(fmt)
+
+        if not stream.access_token:
+            stream.access_token = generate_secret()
+            stream.start()
+        return hass.data[DOMAIN][ATTR_ENDPOINTS][fmt].format(
+            hass.config.api.base_url, stream.access_token)
+    except Exception:
+        raise HomeAssistantError('Unable to get stream')
+
+
+async def async_setup(hass, config):
+    """Set up stream."""
+    hass.data[DOMAIN] = {}
+    hass.data[DOMAIN][ATTR_ENDPOINTS] = {}
+    hass.data[DOMAIN][ATTR_STREAMS] = {}
+
+    # Setup HLS
+    hls_endpoint = async_setup_hls(hass)
+    hass.data[DOMAIN][ATTR_ENDPOINTS]['hls'] = hls_endpoint
+
+    @callback
+    def shutdown(event):
+        """Stop all stream workers."""
+        for stream in hass.data[DOMAIN][ATTR_STREAMS].values():
+            stream.keepalive = False
+            stream.stop()
+        _LOGGER.info("Stopped stream workers.")
+
+    hass.bus.async_listen_once(EVENT_HOMEASSISTANT_STOP, shutdown)
+
+    return True
+
+
+class Stream:
+    """Represents a single stream."""
+
+    def __init__(self, hass, source, options=None, keepalive=False):
+        """Initialize a stream."""
+        self.hass = hass
+        self.source = source
+        self.options = options
+        self.keepalive = keepalive
+        self.access_token = None
+        self._thread = None
+        self._thread_quit = None
+        self._outputs = {}
+
+        if self.options is None:
+            self.options = {}
+
+    @property
+    def outputs(self):
+        """Return stream outputs."""
+        return self._outputs
+
+    def add_provider(self, fmt):
+        """Add provider output stream."""
+        provider = PROVIDERS[fmt](self)
+        if not self._outputs.get(provider.format):
+            self._outputs[provider.format] = provider
+        return self._outputs[provider.format]
+
+    def remove_provider(self, provider):
+        """Remove provider output stream."""
+        if provider.format in self._outputs:
+            del self._outputs[provider.format]
+
+        if not self._outputs:
+            self.stop()
+
+    def start(self):
+        """Start a stream."""
+        if self._thread is None or not self._thread.isAlive():
+            self._thread_quit = threading.Event()
+            self._thread = threading.Thread(
+                name='stream_worker',
+                target=stream_worker,
+                args=(
+                    self.hass, self, self._thread_quit))
+            self._thread.start()
+            _LOGGER.info("Started stream: %s", self.source)
+
+    def stop(self):
+        """Remove outputs and access token."""
+        self._outputs = {}
+        self.access_token = None
+
+        if not self.keepalive:
+            self._stop()
+
+    def _stop(self):
+        """Stop worker thread."""
+        if self._thread is not None:
+            self._thread_quit.set()
+            self._thread.join()
+            self._thread = None
+            _LOGGER.info("Stopped stream: %s", self.source)
diff --git a/homeassistant/components/stream/const.py b/homeassistant/components/stream/const.py
new file mode 100644
index 00000000000..a87daaa9d40
--- /dev/null
+++ b/homeassistant/components/stream/const.py
@@ -0,0 +1,14 @@
+"""Constants for Stream component."""
+DOMAIN = 'stream'
+
+ATTR_ENDPOINTS = 'endpoints'
+ATTR_STREAMS = 'streams'
+ATTR_KEEPALIVE = 'keepalive'
+
+OUTPUT_FORMATS = ['hls']
+
+FORMAT_CONTENT_TYPE = {
+    'hls': 'application/vnd.apple.mpegurl'
+}
+
+AUDIO_SAMPLE_RATE = 44100
diff --git a/homeassistant/components/stream/core.py b/homeassistant/components/stream/core.py
new file mode 100644
index 00000000000..3d6ffa0e20c
--- /dev/null
+++ b/homeassistant/components/stream/core.py
@@ -0,0 +1,162 @@
+"""Provides core stream functionality."""
+import asyncio
+from collections import deque
+import io
+from typing import List, Any
+
+import attr
+from aiohttp import web
+
+from homeassistant.core import callback
+from homeassistant.components.http import HomeAssistantView
+from homeassistant.helpers.event import async_call_later
+from homeassistant.util.decorator import Registry
+
+from .const import DOMAIN, ATTR_STREAMS
+
+PROVIDERS = Registry()
+
+
+@attr.s
+class StreamBuffer:
+    """Represent a segment."""
+
+    segment = attr.ib(type=io.BytesIO)
+    output = attr.ib()               # type=av.OutputContainer
+    vstream = attr.ib()              # type=av.VideoStream
+    astream = attr.ib(default=None)  # type=av.AudioStream
+
+
+@attr.s
+class Segment:
+    """Represent a segment."""
+
+    sequence = attr.ib(type=int)
+    segment = attr.ib(type=io.BytesIO)
+    duration = attr.ib(type=float)
+
+
+class StreamOutput:
+    """Represents a stream output."""
+
+    num_segments = 3
+
+    def __init__(self, stream) -> None:
+        """Initialize a stream output."""
+        self._stream = stream
+        self._cursor = None
+        self._event = asyncio.Event()
+        self._segments = deque(maxlen=self.num_segments)
+        self._unsub = None
+
+    @property
+    def format(self) -> str:
+        """Return container format."""
+        return None
+
+    @property
+    def audio_codec(self) -> str:
+        """Return desired audio codec."""
+        return None
+
+    @property
+    def video_codec(self) -> str:
+        """Return desired video codec."""
+        return None
+
+    @property
+    def segments(self) -> List[int]:
+        """Return current sequence from segments."""
+        return [s.sequence for s in self._segments]
+
+    @property
+    def target_duration(self) -> int:
+        """Return the average duration of the segments in seconds."""
+        durations = [s.duration for s in self._segments]
+        return round(sum(durations) // len(self._segments)) or 1
+
+    def get_segment(self, sequence: int = None) -> Any:
+        """Retrieve a specific segment, or the whole list."""
+        # Reset idle timeout
+        if self._unsub is not None:
+            self._unsub()
+        self._unsub = async_call_later(self._stream.hass, 300, self._cleanup)
+
+        if not sequence:
+            return self._segments
+
+        for segment in self._segments:
+            if segment.sequence == sequence:
+                return segment
+        return None
+
+    async def recv(self) -> Segment:
+        """Wait for and retrieve the latest segment."""
+        last_segment = max(self.segments, default=0)
+        if self._cursor is None or self._cursor <= last_segment:
+            await self._event.wait()
+
+        if not self._segments:
+            return None
+
+        segment = self.get_segment()[-1]
+        self._cursor = segment.sequence
+        return segment
+
+    @callback
+    def put(self, segment: Segment) -> None:
+        """Store output."""
+        # Start idle timeout when we start recieving data
+        if self._unsub is None:
+            self._unsub = async_call_later(
+                self._stream.hass, 300, self._cleanup)
+
+        if segment is None:
+            self._event.set()
+            # Cleanup provider
+            if self._unsub is not None:
+                self._unsub()
+            self._cleanup()
+            return
+
+        self._segments.append(segment)
+        self._event.set()
+        self._event.clear()
+
+    @callback
+    def _cleanup(self, _now=None):
+        """Remove provider."""
+        self._segments = []
+        self._stream.remove_provider(self)
+
+
+class StreamView(HomeAssistantView):
+    """
+    Base StreamView.
+
+    For implementation of a new stream format, define `url` and `name`
+    attributes, and implement `handle` method in a child class.
+    """
+
+    requires_auth = False
+    platform = None
+
+    async def get(self, request, token, sequence=None):
+        """Start a GET request."""
+        hass = request.app['hass']
+
+        stream = next((
+            s for s in hass.data[DOMAIN][ATTR_STREAMS].values()
+            if s.access_token == token), None)
+
+        if not stream:
+            raise web.HTTPNotFound()
+
+        # Start worker if not already started
+        stream.start()
+
+        return await self.handle(request, stream, sequence)
+
+    async def handle(self, request, stream, sequence):
+        """Handle the stream request."""
+        raise NotImplementedError()
diff --git a/homeassistant/components/stream/hls.py b/homeassistant/components/stream/hls.py
new file mode 100644
index 00000000000..285f752c033
--- /dev/null
+++ b/homeassistant/components/stream/hls.py
@@ -0,0 +1,126 @@
+"""
+Provide functionality to stream HLS.
+
+For more details about this component, please refer to the documentation at
+https://home-assistant.io/components/stream/hls
+"""
+from aiohttp import web
+
+from homeassistant.core import callback
+from homeassistant.util.dt import utcnow
+
+from .const import FORMAT_CONTENT_TYPE
+from .core import StreamView, StreamOutput, PROVIDERS
+
+
+@callback
+def async_setup_hls(hass):
+    """Set up api endpoints."""
+    hass.http.register_view(HlsPlaylistView())
+    hass.http.register_view(HlsSegmentView())
+    return '{}/api/hls/{}/playlist.m3u8'
+
+
+class HlsPlaylistView(StreamView):
+    """Stream view to serve a M3U8 stream."""
+
+    url = r'/api/hls/{token:[a-f0-9]+}/playlist.m3u8'
+    name = 'api:stream:hls:playlist'
+    cors_allowed = True
+
+    async def handle(self, request, stream, sequence):
+        """Return m3u8 playlist."""
+        renderer = M3U8Renderer(stream)
+        track = stream.add_provider('hls')
+        stream.start()
+        # Wait for a segment to be ready
+        if not track.segments:
+            await track.recv()
+        headers = {
+            'Content-Type': FORMAT_CONTENT_TYPE['hls']
+        }
+        return web.Response(body=renderer.render(
+            track, utcnow()).encode("utf-8"), headers=headers)
+
+
+class HlsSegmentView(StreamView):
+    """Stream view to serve a MPEG2TS segment."""
+
+    url = r'/api/hls/{token:[a-f0-9]+}/segment/{sequence:\d+}.ts'
+    name = 'api:stream:hls:segment'
+    cors_allowed = True
+
+    async def handle(self, request, stream, sequence):
+        """Return mpegts segment."""
+        track = stream.add_provider('hls')
+        segment = track.get_segment(int(sequence))
+        if not segment:
+            return web.HTTPNotFound()
+        headers = {
+            'Content-Type': 'video/mp2t'
+        }
+        return web.Response(body=segment.segment.getvalue(), headers=headers)
+
+
+class M3U8Renderer:
+    """M3U8 Render Helper."""
+
+    def __init__(self, stream):
+        """Initialize renderer."""
+        self.stream = stream
+
+    @staticmethod
+    def render_preamble(track):
+        """Render preamble."""
+        return [
+            "#EXT-X-VERSION:3",
+            "#EXT-X-TARGETDURATION:{}".format(track.target_duration),
+        ]
+
+    @staticmethod
+    def render_playlist(track, start_time):
+        """Render playlist."""
+        segments = track.segments
+
+        if not segments:
+            return []
+
+        playlist = ["#EXT-X-MEDIA-SEQUENCE:{}".format(segments[0])]
+
+        for sequence in segments:
+            segment = track.get_segment(sequence)
+            playlist.extend([
+                "#EXTINF:{:.04},".format(float(segment.duration)),
+                "./segment/{}.ts".format(segment.sequence),
+            ])
+
+        return playlist
+
+    def render(self, track, start_time):
+        """Render M3U8 file."""
+        lines = (
+            ["#EXTM3U"] +
+            self.render_preamble(track) +
+            self.render_playlist(track, start_time)
+        )
+        return "\n".join(lines) + "\n"
+
+
+@PROVIDERS.register('hls')
+class HlsStreamOutput(StreamOutput):
+    """Represents HLS Output formats."""
+
+    @property
+    def format(self) -> str:
+        """Return container format."""
+        return 'mpegts'
+
+    @property
+    def audio_codec(self) -> str:
+        """Return desired audio codec."""
+        return 'aac'
+
+    @property
+    def video_codec(self) -> str:
+        """Return desired video codec."""
+        return 'h264'
diff --git a/homeassistant/components/stream/worker.py b/homeassistant/components/stream/worker.py
new file mode 100644
index 00000000000..3a3e19d9703
--- /dev/null
+++ b/homeassistant/components/stream/worker.py
@@ -0,0 +1,142 @@
+"""Provides the worker thread needed for processing streams."""
+from fractions import Fraction
+import io
+import logging
+
+from .const import AUDIO_SAMPLE_RATE
+from .core import Segment, StreamBuffer
+
+_LOGGER = logging.getLogger(__name__)
+
+
+def generate_audio_frame():
+    """Generate a blank audio frame."""
+    from av import AudioFrame
+    audio_frame = AudioFrame(format='dbl', layout='mono', samples=1024)
+    # audio_bytes = b''.join(b'\x00\x00\x00\x00\x00\x00\x00\x00'
+    #                        for i in range(0, 1024))
+    audio_bytes = b'\x00\x00\x00\x00\x00\x00\x00\x00' * 1024
+    audio_frame.planes[0].update(audio_bytes)
+    audio_frame.sample_rate = AUDIO_SAMPLE_RATE
+    audio_frame.time_base = Fraction(1, AUDIO_SAMPLE_RATE)
+    return audio_frame
+
+
+def create_stream_buffer(stream_output, video_stream, audio_frame):
+    """Create a new StreamBuffer."""
+    import av
+    a_packet = None
+    segment = io.BytesIO()
+    output = av.open(
+        segment, mode='w', format=stream_output.format)
+    vstream = output.add_stream(
+        stream_output.video_codec, video_stream.rate)
+    # Fix format
+    vstream.codec_context.format = \
+        video_stream.codec_context.format
+    # Check if audio is requested
+    astream = None
+    if stream_output.audio_codec:
+        astream = output.add_stream(
+            stream_output.audio_codec, AUDIO_SAMPLE_RATE)
+        # Need to do it multiple times for some reason
+        while not a_packet:
+            a_packets = astream.encode(audio_frame)
+            if a_packets:
+                a_packet = a_packets[0]
+    return (a_packet, StreamBuffer(segment, output, vstream, astream))
+
+
+def stream_worker(hass, stream, quit_event):
+    """Handle consuming streams."""
+    import av
+    container = av.open(stream.source, options=stream.options)
+    try:
+        video_stream = container.streams.video[0]
+    except (KeyError, IndexError):
+        _LOGGER.error("Stream has no video")
+        return
+
+    audio_frame = generate_audio_frame()
+
+    outputs = {}
+    first_packet = True
+    sequence = 1
+    audio_packets = {}
+
+    while not quit_event.is_set():
+        try:
+            packet = next(container.demux(video_stream))
+            if packet.dts is None:
+                # If we get a "flushing" packet, the stream is done
+                raise StopIteration
+        except (av.AVError, StopIteration) as ex:
+            # End of stream, clear listeners and stop thread
+            for fmt, _ in outputs.items():
+                hass.loop.call_soon_threadsafe(
+                    stream.outputs[fmt].put, None)
+            _LOGGER.error("Error demuxing stream: %s", ex)
+            break
+
+        # Reset segment on every keyframe
+        if packet.is_keyframe:
+            # Save segment to outputs
+            segment_duration = (packet.pts * packet.time_base) / sequence
+            for fmt, buffer in outputs.items():
+                buffer.output.close()
+                del audio_packets[buffer.astream]
+                if stream.outputs.get(fmt):
+                    hass.loop.call_soon_threadsafe(
+                        stream.outputs[fmt].put, Segment(
+                            sequence, buffer.segment, segment_duration
+                        ))
+
+            # Clear outputs and increment sequence
+            outputs = {}
+            if not first_packet:
+                sequence += 1
+
+            # Initialize outputs
+            for stream_output in stream.outputs.values():
+                if video_stream.name != stream_output.video_codec:
+                    continue
+
+                a_packet, buffer = create_stream_buffer(
+                    stream_output, video_stream, audio_frame)
+                audio_packets[buffer.astream] = a_packet
+                outputs[stream_output.format] = buffer
+
+        # First video packet tends to have a weird dts/pts
+        if first_packet:
+            packet.dts = 0
+            packet.pts = 0
+            first_packet = False
+
+        # Store packets on each output
+        for buffer in outputs.values():
+            # Check if the format requires audio
+            if audio_packets.get(buffer.astream):
+                a_packet = audio_packets[buffer.astream]
+                a_time_base = a_packet.time_base
+
+                # Determine video start timestamp and duration
+                video_start = packet.pts * packet.time_base
+                video_duration = packet.duration * packet.time_base
+
+                if packet.is_keyframe:
+                    # Set first audio packet in sequence to equal video pts
+                    a_packet.pts = int(video_start / a_time_base)
+                    a_packet.dts = int(video_start / a_time_base)
+
+                # Determine target end timestamp for audio
+                target_pts = int((video_start + video_duration) / a_time_base)
+                while a_packet.pts < target_pts:
+                    # Mux audio packet and adjust points until target hit
+                    buffer.output.mux(a_packet)
+                    a_packet.pts += a_packet.duration
+                    a_packet.dts += a_packet.duration
+                    audio_packets[buffer.astream] = a_packet
+
+            # Assign the video packet to the new stream & mux
+            packet.stream = buffer.vstream
+            buffer.output.mux(packet)
diff --git a/requirements_all.txt b/requirements_all.txt
index d34c3483eb1..08b4f1bb5df 100644
--- a/requirements_all.txt
+++ b/requirements_all.txt
@@ -179,6 +179,9 @@ asterisk_mbox==0.5.0
 # homeassistant.components.media_player.dlna_dmr
 async-upnp-client==0.14.5
 
+# homeassistant.components.stream
+av==6.1.2
+
 # homeassistant.components.light.avion
 # avion==0.10
 
diff --git a/requirements_test_all.txt b/requirements_test_all.txt
index 2da5247417d..aa2f7e8fc6f 100644
--- a/requirements_test_all.txt
+++ b/requirements_test_all.txt
@@ -53,6 +53,9 @@ aiounifi==4
 # homeassistant.components.notify.apns
 apns2==0.3.0
 
+# homeassistant.components.stream
+av==6.1.2
+
 # homeassistant.components.zha
 bellows-homeassistant==0.7.1
 
diff --git a/script/gen_requirements_all.py b/script/gen_requirements_all.py
index 04c32ff2b26..bb242d1e7ba 100755
--- a/script/gen_requirements_all.py
+++ b/script/gen_requirements_all.py
@@ -45,6 +45,7 @@ TEST_REQUIREMENTS = (
     'aiohue',
     'aiounifi',
     'apns2',
+    'av',
     'caldav',
     'coinmarketcap',
     'defusedxml',
diff --git a/tests/components/camera/test_init.py b/tests/components/camera/test_init.py
index 6b98f378ef0..840e30161f3 100644
--- a/tests/components/camera/test_init.py
+++ b/tests/components/camera/test_init.py
@@ -1,12 +1,12 @@
 """The tests for the camera component."""
 import asyncio
 import base64
-from unittest.mock import patch, mock_open
+from unittest.mock import patch, mock_open, PropertyMock
 
 import pytest
 
 from homeassistant.setup import setup_component, async_setup_component
-from homeassistant.const import ATTR_ENTITY_PICTURE
+from homeassistant.const import (ATTR_ENTITY_ID, ATTR_ENTITY_PICTURE)
 from homeassistant.components import camera, http
 from homeassistant.components.websocket_api.const import TYPE_RESULT
 from homeassistant.exceptions import HomeAssistantError
@@ -16,6 +16,7 @@ from tests.common import (
     get_test_home_assistant, get_test_instance_port, assert_setup_component,
     mock_coro)
 from tests.components.camera import common
+from tests.components.stream.common import generate_h264_video
 
 
 @pytest.fixture
@@ -32,6 +33,14 @@ def mock_camera(hass):
         yield
 
 
+@pytest.fixture
+def mock_stream(hass):
+    """Initialize a demo camera platform with streaming."""
+    assert hass.loop.run_until_complete(async_setup_component(hass, 'stream', {
+        'stream': {}
+    }))
+
+
 class TestSetupCamera:
     """Test class for setup camera."""
 
@@ -156,3 +165,88 @@ async def test_webocket_camera_thumbnail(hass, hass_ws_client, mock_camera):
     assert msg['result']['content_type'] == 'image/jpeg'
     assert msg['result']['content'] == \
         base64.b64encode(b'Test').decode('utf-8')
+
+
+async def test_webocket_stream_no_source(hass, hass_ws_client,
+                                         mock_camera, mock_stream):
+    """Test camera/stream websocket command."""
+    await async_setup_component(hass, 'camera')
+
+    with patch('homeassistant.components.camera.request_stream',
+               return_value='http://home.assistant/playlist.m3u8') \
+            as mock_request_stream:
+        # Request playlist through WebSocket
+        client = await hass_ws_client(hass)
+        await client.send_json({
+            'id': 6,
+            'type': 'camera/stream',
+            'entity_id': 'camera.demo_camera',
+        })
+        msg = await client.receive_json()
+
+        # Assert WebSocket response
+        assert not mock_request_stream.called
+        assert msg['id'] == 6
+        assert msg['type'] == TYPE_RESULT
+        assert not msg['success']
+
+
+async def test_webocket_camera_stream(hass, hass_ws_client, hass_client,
+                                      mock_camera, mock_stream):
+    """Test camera/stream websocket command."""
+    await async_setup_component(hass, 'camera')
+
+    with patch('homeassistant.components.camera.request_stream',
+               return_value='http://home.assistant/playlist.m3u8'
+               ) as mock_request_stream, \
+        patch('homeassistant.components.camera.demo.DemoCamera.stream_source',
+              new_callable=PropertyMock) as mock_stream_source:
+        mock_stream_source.return_value = generate_h264_video()
+        # Request playlist through WebSocket
+        client = await hass_ws_client(hass)
+        await client.send_json({
+            'id': 6,
+            'type': 'camera/stream',
+            'entity_id': 'camera.demo_camera',
+        })
+        msg = await client.receive_json()
+
+        # Assert WebSocket response
+        assert mock_request_stream.called
+        assert msg['id'] == 6
+        assert msg['type'] == TYPE_RESULT
+        assert msg['success']
+        assert msg['result']['url'][-13:] == 'playlist.m3u8'
+
+
+async def test_play_stream_service_no_source(hass, mock_camera, mock_stream):
+    """Test camera play_stream service."""
+    data = {
+        ATTR_ENTITY_ID: 'camera.demo_camera',
+        camera.ATTR_MEDIA_PLAYER: 'media_player.test'
+    }
+    with patch('homeassistant.components.camera.request_stream'), \
+            pytest.raises(HomeAssistantError):
+        # Call service
+        await hass.services.async_call(
+            camera.DOMAIN, camera.SERVICE_PLAY_STREAM, data, blocking=True)
+
+
+async def test_handle_play_stream_service(hass, mock_camera, mock_stream):
+    """Test camera play_stream service."""
+    await async_setup_component(hass, 'media_player')
+    data = {
+        ATTR_ENTITY_ID: 'camera.demo_camera',
+        camera.ATTR_MEDIA_PLAYER: 'media_player.test'
+    }
+    with patch('homeassistant.components.camera.request_stream'
+               ) as mock_request_stream, \
+        patch('homeassistant.components.camera.demo.DemoCamera.stream_source',
+              new_callable=PropertyMock) as mock_stream_source:
+        mock_stream_source.return_value = generate_h264_video()
+        # Call service
+        await hass.services.async_call(
+            camera.DOMAIN, camera.SERVICE_PLAY_STREAM, data, blocking=True)
+        # So long as we request the stream, the rest should be covered
+        # by the play_media service tests.
+        assert mock_request_stream.called
diff --git a/tests/components/stream/__init__.py b/tests/components/stream/__init__.py
new file mode 100644
index 00000000000..96247f0ee16
--- /dev/null
+++ b/tests/components/stream/__init__.py
@@ -0,0 +1 @@
+"""The tests for stream platforms."""
diff --git a/tests/components/stream/common.py b/tests/components/stream/common.py
new file mode 100644
index 00000000000..7e8016cd43c
--- /dev/null
+++ b/tests/components/stream/common.py
@@ -0,0 +1,63 @@
+"""Collection of test helpers."""
+import io
+
+from homeassistant.components.stream import Stream
+from homeassistant.components.stream.const import (
+    DOMAIN, ATTR_STREAMS)
+
+
+def generate_h264_video():
+    """
+    Generate a test video.
+
+    See: http://docs.mikeboers.com/pyav/develop/cookbook/numpy.html
+    """
+    import numpy as np
+    import av
+
+    duration = 5
+    fps = 24
+    total_frames = duration * fps
+
+    output = io.BytesIO()
+    output.name = 'test.ts'
+    container = av.open(output, mode='w')
+
+    stream = container.add_stream('libx264', rate=fps)
+    stream.width = 480
+    stream.height = 320
+    stream.pix_fmt = 'yuv420p'
+
+    for frame_i in range(total_frames):
+
+        img = np.empty((480, 320, 3))
+        img[:, :, 0] = 0.5 + 0.5 * np.sin(
+            2 * np.pi * (0 / 3 + frame_i / total_frames))
+        img[:, :, 1] = 0.5 + 0.5 * np.sin(
+            2 * np.pi * (1 / 3 + frame_i / total_frames))
+        img[:, :, 2] = 0.5 + 0.5 * np.sin(
+            2 * np.pi * (2 / 3 + frame_i / total_frames))
+
+        img = np.round(255 * img).astype(np.uint8)
+        img = np.clip(img, 0, 255)
+
+        frame = av.VideoFrame.from_ndarray(img, format='rgb24')
+        for packet in stream.encode(frame):
+            container.mux(packet)
+
+    # Flush stream
+    for packet in stream.encode():
+        container.mux(packet)
+
+    # Close the file
+    container.close()
+    output.seek(0)
+
+    return output
+
+
+def preload_stream(hass, stream_source):
+    """Preload a stream for use in tests."""
+    stream = Stream(hass, stream_source)
+    hass.data[DOMAIN][ATTR_STREAMS][stream_source] = stream
+    return stream
diff --git a/tests/components/stream/test_hls.py b/tests/components/stream/test_hls.py
new file mode 100644
index 00000000000..a2c962ffb45
--- /dev/null
+++ b/tests/components/stream/test_hls.py
@@ -0,0 +1,117 @@
+"""The tests for hls streams."""
+from datetime import timedelta
+from urllib.parse import urlparse
+
+from homeassistant.setup import async_setup_component
+from homeassistant.components.stream import request_stream
+import homeassistant.util.dt as dt_util
+
+from tests.common import async_fire_time_changed
+from tests.components.stream.common import (
+    generate_h264_video, preload_stream)
+
+
+async def test_hls_stream(hass, hass_client):
+    """
+    Test hls stream.
+
+    Purposefully not mocking anything here to test full
+    integration with the stream component.
+    """
+    await async_setup_component(hass, 'stream', {
+        'stream': {}
+    })
+
+    # Setup demo HLS track
+    source = generate_h264_video()
+    stream = preload_stream(hass, source)
+    stream.add_provider('hls')
+
+    # Request stream
+    url = request_stream(hass, source)
+
+    http_client = await hass_client()
+
+    # Fetch playlist
+    parsed_url = urlparse(url)
+    playlist_response = await http_client.get(parsed_url.path)
+    assert playlist_response.status == 200
+
+    # Fetch segment
+    playlist = await playlist_response.text()
+    playlist_url = '/'.join(parsed_url.path.split('/')[:-1])
+    segment_url = playlist_url + playlist.splitlines()[-1][1:]
+    segment_response = await http_client.get(segment_url)
+    assert segment_response.status == 200
+
+    # Stop stream, if it hasn't quit already
+    stream.stop()
+
+    # Ensure playlist not accessable after stream ends
+    fail_response = await http_client.get(parsed_url.path)
+    assert fail_response.status == 404
+
+
+async def test_stream_timeout(hass, hass_client):
+    """Test hls stream timeout."""
+    await async_setup_component(hass, 'stream', {
+        'stream': {}
+    })
+
+    # Setup demo HLS track
+    source = generate_h264_video()
+    stream = preload_stream(hass, source)
+    stream.add_provider('hls')
+
+    # Request stream
+    url = request_stream(hass, source)
+
+    http_client = await hass_client()
+
+    # Fetch playlist
+    parsed_url = urlparse(url)
+    playlist_response = await http_client.get(parsed_url.path)
+    assert playlist_response.status == 200
+
+    # Wait a minute
+    future = dt_util.utcnow() + timedelta(minutes=1)
+    async_fire_time_changed(hass, future)
+
+    # Fetch again to reset timer
+    playlist_response = await http_client.get(parsed_url.path)
+    assert playlist_response.status == 200
+
+    # Wait 5 minutes
+    future = dt_util.utcnow() + timedelta(minutes=5)
+    async_fire_time_changed(hass, future)
+
+    # Ensure playlist not accessable
+    fail_response = await http_client.get(parsed_url.path)
+    assert fail_response.status == 404
+
+
+async def test_stream_ended(hass):
+    """Test hls stream packets ended."""
+    await async_setup_component(hass, 'stream', {
+        'stream': {}
+    })
+
+    # Setup demo HLS track
+    source = generate_h264_video()
+    stream = preload_stream(hass, source)
+    track = stream.add_provider('hls')
+    track.num_segments = 2
+
+    # Request stream
+    request_stream(hass, source)
+
+    # Run it dead
+    segments = 0
+    while await track.recv() is not None:
+        segments += 1
+
+    assert segments == 3
+    assert not track.get_segment()
+
+    # Stop stream, if it hasn't quit already
+    stream.stop()
diff --git a/virtualization/Docker/setup_docker_prereqs b/virtualization/Docker/setup_docker_prereqs
index 713bbfffba4..bbc513502fa 100755
--- a/virtualization/Docker/setup_docker_prereqs
+++ b/virtualization/Docker/setup_docker_prereqs
@@ -28,6 +28,9 @@ PACKAGES=(
   libmpc-dev libmpfr-dev libgmp-dev
   # homeassistant.components.ffmpeg
   ffmpeg
+  # homeassistant.components.stream
+  libavformat-dev libavcodec-dev libavdevice-dev
+  libavutil-dev libswscale-dev libswresample-dev libavfilter-dev
   # homeassistant.components.sensor.iperf3
   iperf3
 )