diff --git a/source/blender/imbuf/intern/anim_movie.cc b/source/blender/imbuf/intern/anim_movie.cc
index adce91aed41..a9044c2aba2 100644
--- a/source/blender/imbuf/intern/anim_movie.cc
+++ b/source/blender/imbuf/intern/anim_movie.cc
@@ -414,14 +414,18 @@ static int startffmpeg(ImBufAnim *anim)
         1);
   }
 
+  /* Use full_chroma_int + accurate_rnd YUV->RGB conversion flags. Otherwise
+   * the conversion is not fully accurate and introduces some banding and color
+   * shifts, particularly in dark regions. See issue #111703 or upstream
+   * ffmpeg ticket https://trac.ffmpeg.org/ticket/1582 */
   anim->img_convert_ctx = BKE_ffmpeg_sws_get_context(anim->x,
                                                      anim->y,
                                                      anim->pCodecCtx->pix_fmt,
                                                      anim->x,
                                                      anim->y,
                                                      anim->pFrameRGB->format,
-                                                     SWS_BILINEAR | SWS_PRINT_INFO |
-                                                         SWS_FULL_CHR_H_INT);
+                                                     SWS_POINT | SWS_FULL_CHR_H_INT |
+                                                         SWS_ACCURATE_RND);
 
   if (!anim->img_convert_ctx) {
     fprintf(stderr,
diff --git a/tests/data b/tests/data
index 950d2829147..4e1ce05417f 160000
--- a/tests/data
+++ b/tests/data
@@ -1 +1 @@
-Subproject commit 950d28291474521feeb9c2304efb8daf546bf2df
+Subproject commit 4e1ce05417f0e195bdae72738e9f6770f31642a6
diff --git a/tests/python/sequencer_render_tests.py b/tests/python/sequencer_render_tests.py
index 686f20fc935..0f713619baa 100644
--- a/tests/python/sequencer_render_tests.py
+++ b/tests/python/sequencer_render_tests.py
@@ -50,7 +50,7 @@ def main():
     report = render_report.Report("Sequencer", output_dir, oiiotool)
     report.set_pixelated(True)
     # Default error tolerances are quite large, lower them.
-    report.set_fail_threshold(3.0 / 255.0)
+    report.set_fail_threshold(2.0 / 255.0)
     report.set_fail_percent(0.01)
     report.set_reference_dir("reference")