Video shot segmentation is an important step in key frame selection, video copy detection, video summarization, and video indexing for retrieval. Although some types of video data, e.g., live sports coverage, have abrupt shot boundaries that are easy to identify using simple heuristics, it is much more difficult to identify shot boundaries in other types such as cinematic movies. We propose an algorithm for shot boundary detection able to accurately identify not only abrupt shot boundaries, but also the fade-in and fade-out boundaries typical of cinematic movies. The algorithm is based on analysis of changes in the entropy of the gray scale intensity over consecutive frames and analysis of correspondences between SURF features over consecutive frames. In an experimental evaluation on the TRECVID-2007 shot boundary test set, the algorithm achieves substantial improvements over state of the art methods, with a precision of 97.8% and a recall of 99.3%.