diff --git a/cms/djangoapps/contentstore/features/video.feature b/cms/djangoapps/contentstore/features/video.feature
index 07771c9d61..0129732d30 100644
--- a/cms/djangoapps/contentstore/features/video.feature
+++ b/cms/djangoapps/contentstore/features/video.feature
@@ -8,3 +8,8 @@ Feature: Video Component
   Scenario: Creating a video takes a single click
     Given I have clicked the new unit button
     Then creating a video takes a single click
+
+  Scenario: Captions are shown correctly
+    Given I have created a Video component
+    And I have hidden captions
+    Then when I view the video it does not show the captions
diff --git a/cms/djangoapps/contentstore/features/video.py b/cms/djangoapps/contentstore/features/video.py
index 7cbe8a2258..fd8624999e 100644
--- a/cms/djangoapps/contentstore/features/video.py
+++ b/cms/djangoapps/contentstore/features/video.py
@@ -16,3 +16,13 @@ def video_takes_a_single_click(step):
     assert(not world.is_css_present('.xmodule_VideoModule'))
     world.css_click("a[data-location='i4x://edx/templates/video/default']")
     assert(world.is_css_present('.xmodule_VideoModule'))
+
+
+@step('I have hidden captions')
+def set_show_captions_false(step):
+    world.css_click('a.hide-subtitles')
+
+
+@step('when I view the video it does not show the captions')
+def does_not_show_captions(step):
+    assert world.css_find('.video')[0].has_class('closed')
diff --git a/common/lib/xmodule/xmodule/js/src/video/display.coffee b/common/lib/xmodule/xmodule/js/src/video/display.coffee
index aadafbc8d0..0393fe8b9c 100644
--- a/common/lib/xmodule/xmodule/js/src/video/display.coffee
+++ b/common/lib/xmodule/xmodule/js/src/video/display.coffee
@@ -5,7 +5,7 @@ class @Video
     @start = @el.data('start')
     @end = @el.data('end')
     @caption_asset_path = @el.data('caption-asset-path')
-    @show_captions = @el.data('show-captions') == "true"
+    @show_captions = @el.data('show-captions')
     window.player = null
     @el = $("#video_#{@id}")
     @parseVideos @el.data('streams')
@@ -13,7 +13,7 @@ class @Video
     @parseSpeed()
     $("#video_#{@id}").data('video', this).addClass('video-load-complete')
 
-    @hide_captions = $.cookie('hide_captions') == 'true'
+    @hide_captions = $.cookie('hide_captions') == 'true' or (not @show_captions)
 
     if YT.Player
       @embed()