A smart multimedia content receiver automatically resizes video images based on the content being displayed on the TV screen. Such a self-formatting content receiver includes on-board image processing capability that provides continuous video analysis to detect changes in program formatting and convert each frame as it is received in real time, as opposed to processing and re-releasing an entire program or movie, or relying on the viewer to re-format programs manually. In response to detecting a change, aspect ratio adjustments are made as needed. Because the self-formatting content receiver has access to the video data before it is displayed, such automatic on-the-fly adjustments ensure that the viewer's experience during program changes is seamless and without distortion. Subscribers can influence decisions made by the content receiver by pre-setting viewer preferences for aspect ratio adjustment.