In this paper, we consider dynamic precoder/decorrelator optimization for multimedia streaming in MIMO interference networks. We propose a truly cross-layer framework in the sense that the optimization objective is the application level performance metrics for multimedia streaming, namely the playback interruption and buffer overflow probabilities. The optimization variables are the MIMO precoders/decorrelators at the transmitters and the receivers, which are adaptive to both the instantaneous channel condition and the playback queue length. The problem is a challenging multi-dimensional stochastic optimization problem and brute-force solution has exponential complexity. By exploiting the underlying timescale separation and special structure in the problem, we derive a closed-form approximation of the value function based on continuous time perturbation. Using this approximation, we propose a low complexity dynamic MIMO precoder/decorrelator control algorithm by solving an equivalent weighted MMSE problem. We also establish the technical conditions for asymptotic optimality of the low complexity control algorithm. Finally, the proposed scheme is compared with various baselines through simulations and it is shown that significant performance gain can be achieved.