diff --git a/lib/hls/hls_parser.js b/lib/hls/hls_parser.js
index 83815525a6..fc442ba594 100644
--- a/lib/hls/hls_parser.js
+++ b/lib/hls/hls_parser.js
@@ -2632,7 +2632,7 @@ shaka.hls.HlsParser = class {
       position = mediaSequenceNumber + skippedSegments + i;
 
       const discontinuityTag = shaka.hls.Utils.getFirstTagWithName(
-          playlist.tags, 'EXT-X-DISCONTINUITY');
+          item.tags, 'EXT-X-DISCONTINUITY');
       if (discontinuityTag) {
         discontinuitySequence++;
       }
diff --git a/test/hls/hls_live_unit.js b/test/hls/hls_live_unit.js
index 82e18285c5..4432c0d4a6 100644
--- a/test/hls/hls_live_unit.js
+++ b/test/hls/hls_live_unit.js
@@ -550,20 +550,24 @@ describe('HlsParser live', () => {
       });
     });
 
-    it('sets timestamp offset for segments with discontinuity', async () => {
+    it('sets discontinuity sequence numbers', async () => {
       const ref1 = makeReference(
           'test:/main.mp4', 0, 2, /* syncTime= */ null,
           /* baseUri= */ '', /* startByte= */ 0, /* endByte= */ null,
           /* timestampOffset= */ 0);
+      ref1.discontinuitySequence = 30;
 
-      // Expect the timestamp offset to be set for the segment after the
-      // EXT-X-DISCONTINUITY tag.
       const ref2 = makeReference(
           'test:/main2.mp4', 2, 4, /* syncTime= */ null,
           /* baseUri= */ '', /* startByte= */ 0, /* endByte= */ null,
           /* timestampOffset= */ 0);
+      ref2.discontinuitySequence = 31;
 
-      await testInitialManifest(master, mediaWithDiscontinuity, [ref1, ref2]);
+      const manifest = await testInitialManifest(
+          master, mediaWithDiscontinuity, [ref1, ref2]);
+
+      await testUpdate(
+          manifest, mediaWithUpdatedDiscontinuitySegment, [ref2]);
     });
 
     // Test for https://github.com/shaka-project/shaka-player/issues/4223
@@ -842,32 +846,6 @@ describe('HlsParser live', () => {
             shaka.net.NetworkingEngine.RequestType.MANIFEST);
       });
 
-      it('reuses cached timestamp offset for segments with discontinuity',
-          async () => {
-            const ref1 = makeReference(
-                'test:/main.mp4', 0, 2, /* syncTime= */ null);
-            const ref2 = makeReference(
-                'test:/main2.mp4', 2, 4, /* syncTime= */ null);
-
-            const manifest = await testInitialManifest(
-                master, mediaWithDiscontinuity, [ref1, ref2]);
-
-            fakeNetEngine.request.calls.reset();
-            await testUpdate(
-                manifest, mediaWithUpdatedDiscontinuitySegment, [ref2]);
-
-            // Only one request should be made, and it's for the playlist.
-            // Expect to use the cached timestamp offset for the main2.mp4
-            // segment, without fetching the start time again.
-            expect(fakeNetEngine.request).toHaveBeenCalledTimes(1);
-            fakeNetEngine.expectRequest(
-                'test:/video',
-                shaka.net.NetworkingEngine.RequestType.MANIFEST);
-            fakeNetEngine.expectNoRequest(
-                'test:/main.mp4',
-                shaka.net.NetworkingEngine.RequestType.SEGMENT);
-          });
-
       it('request playlist delta updates to skip segments', async () => {
         const mediaWithDeltaUpdates = [
           '#EXTM3U\n',