Why is my S3 screen fading and washing out?

I was recently given an S3 and love it. The one problem it has is the display. 3/4 of the display from the top left corner to near the bottom of the screen is faded and washed away. I'm almost certain the lcd and digitizer need replacing but when I go to swipe the screen to check notifications, the display shows normal. If the display is fading and washing away icons from top on the home screen, why wouldn't it have the same effect on the notification screen?

Thanks.

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