This document proposes a dynamic backlight scaling optimization technique for mobile streaming applications. It presents an optimal algorithm to dynamically adjust backlight levels for video frames based on video distortion, hardware limitations, and user perception. The algorithm is demonstrated on an HTC Desire mobile phone browsing YouTube videos. Experimental results show 18-31% backlight energy savings when the video distortion threshold is set to 0.9 and playback duration threshold is set to 10 seconds. The technique is presented as an example of a cloud-based mobile energy-saving service.