Shot boundary detection algorithm has the longest and richest history in the area of content based video analysis and retrieval. Various automatic shot boundary detection techniques have been proposed and their performances are reliable, especially for video cut detection. This paper approaches the video cut transition detection based on the block wise histogram differences of the two consecutive frames of a video sequence in RGB color space. Most of the cut identification techniques uses a threshold to discriminate between the inter frame difference values and thus identify the video breakpoints. A new threshold calculation algorithm is proposed for cut identification process. Experimental results show that the proposed method gives better results than the existing methods. ©2010 IEEE.