Due to the growing importance of optimizing quality and efficiency of video streaming delivery, accurate assessment of user perceived video quality becomes increasingly relevant. However, due to the wide range of viewing distances encountered in real-world viewing settings, actually perceived video quality can vary significantly in everyday viewing situations. In this paper, we investigate and quantify the influence of viewing distance on perceived video quality. A subjective experiment was conducted with full HD sequences at three different stationary viewing distances, with each video sequence being encoded at three different quality levels. Our study results confirm that the viewing distance has a significant influence on the quality assessment. In particular, they show that an increased viewing distance generally leads to an increased perceived video quality, especially at low media encoding quality levels. In this context, we also provide an estimation of potential bitrate savings that knowledge of actual viewing distance would enable in practice. Since current objective video quality metrics do not systematically take into account viewing distance, we also analyze and quantify the influence of viewing distance on the correlation between objective and subjective metrics. Our results confirm the need for distance-aware objective metrics when accurate prediction of perceived video quality in real-world environments is required.