Embodiments of a system that includes one or more integrated circuits are described. During operation, the system may determine an intensity setting of the light source based on at least a portion of a video image, such as the portion of the transformed video image that includes spatially varying visual information in the video image. Moreover, the system may modify the video image so that a product of the intensity setting and a transmittance associated with the modified video image approximately equals a product of a previous intensity setting and a transmittance associated with the video image. For example, the modification may include scaling brightness values in the transformed video image. Next, the system may identify a region in the video image in which the scaling of the brightness values results in a visual artifact associated with reduced contrast. For example, the region may include a bright region surrounded by a darker region. Then, the system may reduce the scaling of the brightness values in the region to, at least partially, restore the contrast, thereby reducing the visual artifact. Additionally, the system may spatially filter the brightness values in the video image to reduce a spatial discontinuity between the brightness values of pixels within the region and the brightness values in a remainder of the video image.