A method for identifying a scene change from a sequence of video data, comprising: for each of a plurality of macroblocks of a source image, calculating a plurality of variance values of a plurality of blocks therein, selecting a minimum variance value from the calculated plurality of variance values for each macroblock; calculating an average minimum variance value for the plurality of macroblocks; comparing the average minimum variance value of the plurality of macroblocks of the source image to a corresponding average minimum variance value of macroblocks of a previously processed image; generating a normalized average minimum variance value among blocks from the comparison of minimum variance values; calculating an average variance value of blocks in the source image; calculating an activity level of the source image representing a ratio between the average variance value and the average minimum variance value; comparing the activity level of the source image to an activity level of the previously processed image; generating a normalized activity level from the comparison of activity levels; generating a scene change decision by comparing each of the normalized average minimum variance value and the normalized activity level to predetermined thresholds, wherein a scene change is detected if the normalized average minimum variance value is above a first predetermined threshold and the normalized activity level is above a second predetermined threshold, or if the normalized average minimum variance value is below the first predetermined threshold and the normalized activity level is above a third predetermined threshold, the third predetermined threshold greater than the second predetermined threshold. for each of a plurality of macroblocks of a source image, calculating a plurality of variance values of a plurality of blocks therein, selecting a minimum variance value from the calculated plurality of variance values for each macroblock; calculating an average minimum variance value for the plurality of macroblocks; comparing the average minimum variance value of the plurality of macroblocks of the source image to a corresponding average minimum variance value of macroblocks of a previously processed image; generating a normalized average minimum variance value among blocks from the comparison of minimum variance values; calculating an average variance value of blocks in the source image; calculating an activity level of the source image representing a ratio between the average variance value and the average minimum variance value; comparing the activity level of the source image to an activity level of the previously processed image; generating a normalized activity level from the comparison of activity levels; generating a scene change decision by comparing each of the normalized average minimum variance value and the normalized activity level to predetermined thresholds, wherein a scene change is detected if the normalized average minimum variance value is above a first predetermined threshold and the normalized activity level is above a second predetermined threshold, or if the normalized average minimum variance value is below the first predetermined threshold and the normalized activity level is above a third predetermined threshold, the third predetermined threshold greater than the second predetermined threshold.