This paper investigates the impact of ambient light and peak white (maximum brightness of a display) on the perceived quality of videos displayed using local backlight dimming. Two subjective tests providing quality evaluations are presented and analyzed. The analyses of variance show significant interactions of the factors peak white and ambient light with the perceived quality. Therefore, we proceed to predict the subjective quality grades with objective measures. The rendering of the frames on liquid crystal displays with light emitting diodes backlight at various ambient light and peak white levels is computed using a model of the display. Widely used objective quality metrics are applied based on the rendering models of the videos to predict the subjective evaluations. As these predictions are not satisfying, three machine learning methods are applied: partial least square regression, elastic net, and support vector regression. The elastic net method obtains the best prediction accuracy with a spearman rank order correlation coefficient of 0.71, and two features are identified as having a major influence on the visual quality.