In 1992, movie director Robert Rodriguez produced an entire film for less than $10,000 US Dollars (USD), using primarily amateur actors, 16mm film stock and pre-existing sets and locations. The film was entitled El Mariachi, and was originally intended as low-budget entertainment for film-goers in Mexico alone. A major American distributor eventually bought the rights to the film, transferred it from 16mm to a more viable 35mm, and the movie eventually became a box office success. El Mariachi is an example of an indie movie, industry jargon for an independently produced film with a minimal shooting budget.

An indie movie is generally an independent project from the ground up. The producers of an indie movie often must procure all of the financing themselves, which means investing in the film themselves or finding outside backers. The director usually agrees to waive his usual union-mandated fee or offers to work for a percentage of the film's profits, if there are any. Similarly, the writers, production staff and actors involved in an indie movie all agree to work for minimal union scale wages or other compensation.

An indie movie does benefit in many ways by remaining independent of a major film studio. Many of the themes explored in an indie movie would not be considered appealing to the mass audience sought by major studios. Controversial subject matter or experimental film techniques are part of the indie movie culture, which prides itself on not being formulaic or mainstream. An indie movie director and his crew usually enjoy complete artistic control over the production.

While major studio motion pictures may go straight out to theaters, an indie movie may have a much more circuitous path to follow. An indie movie may be completed over time, beginning with the principle shooting and possibly ending several years later with post-production work. A finished indie movie may be entered into several prestigious competitions and film festivals sponsored by such organizations as Robert Redford's Sundance Institute. Success in these smaller venues may cause an indie movie to be noticed by major distributors. If an indie movie is successfully picked up by a studio or distributor, it may actually be seen on thousands of screens and the producers may actually recoup their initial investments.

An indie movie may actually feature a number of mainstream actors, writers and directors who are seeking smaller projects of personal interest. Actress Parker Posey, for example, has become known as the "Queen of the Indies" for her frequent appearances in low-budget films with high artistic concepts. It is not unusual to see mainstream actors or directors agree to work on an indie movie as a personal favor to a friend just starting out in the business or as a diversion from the usual roles Hollywood may offer them.