The objective assessment of encoding performance is a key aspect of video delivery optimization. Objective metrics typically do not address fully the different viewing distances and behavior of compression artifacts being subjected to perceptual changes in video. This poses a daunting task of optimizing compression for video delivery systems for specific viewing conditions and perceptual optimization. This paper introduces a perceptual pre-processing and then discusses accuracy of typically used objective metrics for judging performance of pre-processing for observers at different viewing distances. To this end, this paper reports an in-depth analysis to check if objective metrics can successfully match subjective results at critical pairs i.e. pre-processed and original video at same QP.