A policy enforcement device performs a method for adjusting video compression parameters for encoding source video based on a viewer's environment. The method includes: receiving, from a video receiving device, a video stream identifier indicating a video stream and a source of the video stream, wherein the video receiving device is remote from the source of the video stream; receiving an indication of environmental conditions of a viewer of the video stream using the video receiving device; determining a set of video compression parameters based on the indication of environmental conditions of the viewer; sending the set of video compression parameters to the identified source of the video stream to enable encoding of the video stream to a different compression level.