Video streaming over Hypertext Transfer Protocol (HTTP) is highly dominant due to the availability of Internet support on many devices. The multimedia applications that generate IP traffic should be conducive with efficient utilization of network resources. Adaptive video streaming over HTTP becomes attractive for content service providers, as it not only uses the existing infrastructure of Web downloading (thus saving an extra cost), but it also provides the ability to change the video quality (bitrate) according to dynamic network conditions for increasing the user's perceived Quality of Experience (QoE). Video streaming over HTTP is easier and cheaper to move data closer to network users, and the video file is just like a normal Web object. In this paper, we have proposed a novel rate adaptive streaming algorithm that enhances the user's perceived quality with high bandwidth utilization for on-demand video. The proposed algorithm considers the following metrics in order to adapt the video quality, which are; player buffer, dropped of excess video frames per second (fps), and availability of network bandwidth. The algorithm is evaluated in dynamic real time Internet environment by using the wired and wireless network at the client side.