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An independent film, or indie film, is usually a low-budget film that is produced by a small movie studio. Additionally, the term is used to describe less commercially-driven art films which differ markedly from the norms of plot-driven, mainstream classical Hollywood cinema. These films are often produced by subsidiaries of larger studios, such as Sony Pictures Classics, as long as less than half of its budget comes from a major movie studio. In 2005, about 15% of the U.S. domestic box office revenue was from independent studios.[1] Independent films are often distinguishable by their content or style. The writer or director's original authorial intent or personal creative vision is usually maintained in the final film.

The independent film scene's development in the 1990s and 2000s has been stimulated by a range of factors, including the development of affordable high-definition digital video cameras that can rival 35 mm film quality and easy-to-use computer editing software and the increasing visibility of independent film festivals such as the Sundance Film Festival.

On the business side, the cost of big-budget studio films also leads to conservative choices in cast and crew. The problem is exacerbated by the trend towards co-financing (over two-thirds of the films put out by Warner Bros. in 2000 were joint ventures, up from 10% in 1987).[2] An unproven film director is almost never given the opportunity to get his or her big break with the studios unless he or she otherwise has significant industry experience in film or television. Films with "unknowns" in the cast, particularly in lead roles, are also rarely produced by the Big Six.

Furthermore, another key expense for independent movie makers is the music for the film. The licensing fees for popular songs can range between US$10,000–$20,000.

The increasing popularity and feasibility of low-budget (but not necessarily low-quality) films over the last 15 years has led to a vast increase in the number of aspiring filmmakers -- people who have written spec scripts and who hope to find several million dollars to turn that script into an independent film sensation like Reservoir Dogs, Susan Hero, or Little Miss Sunshine. These aspiring filmmakers often work day-jobs while they pitch their scripts to independent film production companies, talent agents, and wealthy investors. Their dream seems much more attainable than before the independent film revolution because these novice filmmakers no longer need to gain the backing of a major studio and access to perhaps a hundred million dollars to make their film. (See the filmmaking documentary Dreams on Spec, or BookWars.)

Independent movie-making has also resulted in the proliferation and repopularization of short films and short film festivals. Full-length films are often showcased at film festivals such as the Sundance Film Festival, the Slamdance Film Festival, the South By Southwest film festival, the Raindance Film Festival, or the Cannes Film Festival. Award winners from these exhibitions are more likely to get picked up for distribution by major film studios.

The major commercial film industry in the United States is in Hollywood, while much of the independent film industry is in New York City. The following studios are considered to be the most prevalent of the independent studios (they are used to produce/release independent films and foreign-language films):

• Lions Gate Films
• Fox Searchlight Pictures
• Focus Features/Rogue Pictures
• Sony Pictures Classics
• IFC Films
• Samuel Goldwyn Films
• Warner Independent Pictures
• The Weinstein Company/Dimension Films
• Magnolia Pictures
• Paramount Vantage
• Palm Pictures
• Tartan Films
• Newmarket Films
• Picturehouse (formerly Fine Line Features, before Time Warner acquired Newmarket's distribution arm, and merged it with Fine Line to form Picturehouse, a joint venture of HBO and New Line Cinema)
• ThinkFilm
• Miramax Films
• Troma Entertainment

Note that many of the above studios are actually subsidiaries of larger studios — for example, Sony Pictures Classics is owned by Sony Pictures and is designed to develop less commercial, more character driven films, and Fox Searchlight (which released the surprise hit Bend It Like Beckham in 2002) belongs to the same company that owns 20th Century Fox. Subsidiaries of major studios, as part of their larger, major studio parent companies, are not "true" independent film studios. Furthermore, companies such as Lucasfilm often co-finance their productions and partner with Big Six studios for distribution.

In addition to these higher profile "independent" studios there are thousands of smaller production companies that produce truly independent films every year. These smaller companies look to regionally release their films theatrically or for additional financing and resources to distribute, advertise and exhibit their project on a national scale. The direct-to-video market is not often noted as artistically fertile ground but among its many entries are ambitious independent films that either failed to achieve theatrical distribution or did not seek it. Moving forward, particularly as theatrical filming goes digital and distribution eventually follows, the line between "film," direct-to-disc productions, and feature-length videos whose main distribution channel is wholly electronic, should continue to blur.