In this study, the performance of a rate adaptive video streaming algorithm is examined under controlled packet loss rates and delays. The developed algorithm is a set of heuristics that consider the packet loss rate and receiver buffer level during the adaptation decision. The algorithm is content aware in such a way that it employs quality or temporal scaling, or both, in accordance with the amount of motion in a scene. Extensive periodic and non-periodic packet loss scenarios are implemented to examine the behavior of the algorithm. It has been observed that the algorithm reacts to congestion by reducing its data rate and maintain interrupt-free display even if the continuous packet loss rate approaches 15%. The results of this study confirm the suitability of our algorithm for Internet video streaming where congestion can occur any time unpredictably. (C) 2004 Elsevier B.V. All rights reserved.