Systems and methods are provided for enhancing streaming performance through controlled and selectively-applied reductions in the color depth of streamed video content. In various embodiments, the method includes receiving, at a streaming media server, a request transmitted over a communications network to stream video content to a client media receiver. In response to this request, a streaming video session is initiated between the client media receiver and the streaming media server. During the streaming video session, the streaming media server obtains the video content as video input data having an original color depth; generates an encoded video stream from the video input data, while selectively reducing a color depth of the encoded video stream; and transmits the encoded video stream over the communications network to the client media receiver. The streaming media server repeats the steps of generating and transmitting until termination of the streaming video session.