In this paper we present a novel two stage algorithm for improving video coding efficiency. The proposed method combines video cut detection and adaptive GOP structure. At first, we have proposed a new technique of frames' comparison for the shot cut detection. The majority of existing methods compare pairs of successive frames. We compare actual frame with its motion estimated prediction. We also present adaptive threshold. The efficiency of novel technique for video cut detection was confirmed through experiment and compared to the commonly used ones in the terms of recall and precision. The next step is to situate I frames to the positions of detected cuts during the process of video encoding. Finally the proposed method is verified by simulations and the obtained results are compared with fixed GOP structures of sizes 4, 8, 12, 16, 32, 64, 128 and GOP structure with length of entire video. Proposed method achieved the gain in bit rate from 15,33% to 50,59%, while not degrading PSNR in comparison to simulated fixed GOP structures.
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