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By default, Avalon prechunks HLS artifacts that can be served by any webserver, see: Matterhorn's distribute-streaming hls workflow.  However For development, this may suffice because a dedicated streaming server isn't necessary, however many consider that prechunking inflexible and inconvenient.

An For production environments, an HLS-enabled server like Wowza, Adobe Media System (commercial) or Nginx + the HLS module (open-source) can take an mp4 created from distribute-streaming and stream it on the fly. Then prechunking can be disabled by commenting out the distribute-hls operation. Instructions for setting up Nginx will follow soon.