A display system for generating a picture in accordance with image information derived from a video signal, comprising: - a light modulation device having a multitude of pixels with variable transmission, - an illumination device comprising at least one individually controlled region for illuminating corresponding regions of the light modulation device, - a control circuit, for driving both the light modulation device and the illumination device, wherein each region of the light modulation device, when in operation, comprises a pixel P Lregionmax, i which exhibits a maximum luminance L pic, regionmax, i for that region, and wherein at least one region has a pixel P Lmax exhibiting the largest luminance L pic, max of the entire display system in accordance with the image information, - the control circuit is arranged to distribute the image information over the light modulation device and the illumination device, characterized in that the control circuit is adapted to: derive the maximum luminance L pic, regionmax, i for each region; select a parameter a for each region from the range 1⁄2 < a ≤ 1 dependent on the at least one luminance level L pic, regionmax, i for the region; - set the luminance L BL,i of the illumination device behind said at least one region according to the formula L BL, i = L pic, max × L pic, region max, i L pic, max a; and - adjust the transmission of the other pixels in said region in accordance with the image information and L BL,i by dividing L BL out of the luminance profile of the original picture, wherein the control circuit is arranged to select the parameter a = 1 or nearly equal to 1 for luminance levels L pic, regionmax, i above a predetermined threshold and to set a lower value of a for luminance levels L pic, regionmax, i below the predetermined threshold. - a light modulation device having a multitude of pixels with variable transmission, - an illumination device comprising at least one individually controlled region for illuminating corresponding regions of the light modulation device, - a control circuit, for driving both the light modulation device and the illumination device, wherein each region of the light modulation device, when in operation, comprises a pixel P Lregionmax, i which exhibits a maximum luminance L pic, regionmax, i for that region, and wherein at least one region has a pixel P Lmax exhibiting the largest luminance L pic, max of the entire display system in accordance with the image information, - the control circuit is arranged to distribute the image information over the light modulation device and the illumination device, characterized in that the control circuit is adapted to: derive the maximum luminance L pic, regionmax, i for each region; select a parameter a for each region from the range 1⁄2 < a ≤ 1 dependent on the at least one luminance level L pic, regionmax, i for the region; derive the maximum luminance L pic, regionmax, i for each region; select a parameter a for each region from the range 1⁄2 < a ≤ 1 dependent on the at least one luminance level L pic, regionmax, i for the region; - set the luminance L BL,i of the illumination device behind said at least one region according to the formula L BL, i = L pic, max × L pic, region max, i L pic, max a; and - adjust the transmission of the other pixels in said region in accordance with the image information and L BL,i by dividing L BL out of the luminance profile of the original picture, wherein the control circuit is arranged to select the parameter a = 1 or nearly equal to 1 for luminance levels L pic, regionmax, i above a predetermined threshold and to set a lower value of a for luminance levels L pic, regionmax, i below the predetermined threshold.