A system and method of perceptual quality assessment for multimedia content in a communications network employing digital watermarking. A content preparer prepares content for quality assessment by embedding digital watermarks into the multimedia data, each watermark having a different level of robustness with respect to a specified type of potential degradation introduced during content transmission. A quality assessor provides an assessment of the quality of the transmitted content by attempting to detect the presence of at least one watermark, and calculating a quality assessment score based on the level(s) of robustness of the detected watermark(s) with respect to the specified type of potential degradation. The quality assessment score can be calculated based on the level of robustness of the least robust watermark whose presence was successfully detected by the quality assessor. The quality assessor generates an output indication of the transmitted content fidelity using any suitable type of output indication.