Blue Pixelation + Audio Dropouts

I am running latest updated version of OSMC on RPi 3. A problem started to appear recently where there is blue (not green) pixelation that becomes very obvious during dark scenes but is also becoming noticeable during regularly lit scenes. It almost looks like a halo of pixels around certain areas. There are also AUDIO dropouts but video continues to play.

I have read a lot about this being corrupted files but I have tested with PC running Kodi of exact same streams with zero issues. I also noticed that my display when just browsing through the menus is no longer crisp. It looks pixelated and grainy. I have fiddled with the HDMI connection to ensure that it is secure but I suspect the issue may be my HDMI connector on the RPi being faulty,

Sadly the RPi is only a few months old and does not get used often so this is strange. I have tested with the same HDMI cable with different devices (Netflix, laptop, DVD) and with the same TV with NO issues.

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  • Change your HDMI cable
  • If anything else is plugged in to your TV (or AV receiver if you have one), then remove those connections and test with Pi only.

Might be http://elinux.org/R-Pi_Troubleshooting#Interference_visible_on_a_HDMI_or_DVI_monitor
Try adding config_hdmi_boost=7 (you can go up to 11) to config.txt.
However a better hdmi cable may make this unnecessary.