In a switched digital video content-based network, wherein a head end obtains a first group of program streams and sends to a client only a subset of the program streams selected by subscribers in a neighborhood of the client, imminence and/or presence of a condition of inadequate bandwidth is determined. Responsive to the determining, a bit rate of at least one of the subset of the program streams selected by the subscribers in the neighborhood of the client is dynamically decreased by adjusting encoding thereof, while maintaining adequate quality for the at least one of the subset of the program streams selected by the subscribers in the neighborhood of the client, based on an objective quality measure, in order to address the imminence and/or presence of the condition of inadequate bandwidth.