diff --git a/pillar/api/encoding.py b/pillar/api/encoding.py
index ae161b09..318a1403 100644
--- a/pillar/api/encoding.py
+++ b/pillar/api/encoding.py
@@ -1,4 +1,5 @@
 import datetime
+import json
 import logging
 import os
 
@@ -33,6 +34,7 @@ def size_descriptor(width, height):
         1280: '720p',
         1920: '1080p',
         2048: '2k',
+        3840: 'UHD',
         4096: '4k',
     }
 
@@ -104,18 +106,13 @@ def zencoder_notifications():
     file_doc['processing']['status'] = job_state
 
     if job_state == 'failed':
-        log.warning('Zencoder job %i for file %s failed.', zencoder_job_id, file_id)
-        # Log what Zencoder told us went wrong.
-        for output in data['outputs']:
-            if not any('error' in key for key in output):
-                continue
-            log.warning('Errors for output %s:', output['url'])
-            for key in output:
-                if 'error' in key:
-                    log.info('    %s: %s', key, output[key])
+        log.warning('Zencoder job %s for file %s failed: %s', zencoder_job_id, file_id,
+                    json.dumps(data, sort_keys=True, indent=4))
 
         file_doc['status'] = 'failed'
         current_app.put_internal('files', file_doc, _id=file_id)
+
+        # This is 'okay' because we handled the Zencoder notification properly.
         return "You failed, but that's okay.", 200
 
     log.info('Zencoder job %s for file %s completed with status %s.', zencoder_job_id, file_id,
diff --git a/tests/test_api/test_encoding.py b/tests/test_api/test_encoding.py
index 3cd18fcf..d23c3d80 100644
--- a/tests/test_api/test_encoding.py
+++ b/tests/test_api/test_encoding.py
@@ -36,7 +36,7 @@ class ZencoderNotificationTest(AbstractPillarTest):
                   expected_status=401)
 
     def test_good_secret_existing_file(self):
-        self.ensure_file_exists(file_overrides={
+        file_id, _ = self.ensure_file_exists(file_overrides={
             'processing': {'backend': 'zencoder',
                            'job_id': 'koro-007',
                            'status': 'processing'}
@@ -44,7 +44,7 @@ class ZencoderNotificationTest(AbstractPillarTest):
 
         self.post('/api/encoding/zencoder/notifications',
                   json={'job': {'id': 'koro-007',
-                                'state': 'done'},
+                                'state': 'finished'},
                         'outputs': [{
                             'format': 'jpg',
                             'height': 1080,
@@ -58,4 +58,34 @@ class ZencoderNotificationTest(AbstractPillarTest):
                   headers={'X-Zencoder-Notification-Secret': self.secret},
                   expected_status=204)
 
-        # TODO: check that the file in MongoDB is actually updated properly.
+        db_file = self.app.db('files').find_one(file_id)
+        self.assertEqual('complete', db_file['status'])
+        self.assertEqual('finished', db_file['processing']['status'])
+
+    def test_failed_job(self):
+        file_id, _ = self.ensure_file_exists(file_overrides={
+            'processing': {'backend': 'zencoder',
+                           'job_id': 'koro-007',
+                           'status': 'processing'}
+        })
+
+        self.post('/api/encoding/zencoder/notifications',
+                  json={'job': {'id': 'koro-007',
+                                'state': 'failed'},
+                        'outputs': [{
+                            'format': 'jpg',
+                            'height': 1080,
+                            'width': 2048,
+                            'file_size_in_bytes': 15,
+                            'md5_checksum': None,
+                            'error': 'Lama support malfunctioning',
+                            'url': 'http://example.com/file.mp4',
+                        }],
+                        'input': {
+                            'duration_in_ms': 5000,
+                        }},
+                  headers={'X-Zencoder-Notification-Secret': self.secret})
+
+        db_file = self.app.db('files').find_one(file_id)
+        self.assertEqual('failed', db_file['status'])
+        self.assertEqual('failed', db_file['processing']['status'])