An independent record label (or indie label) is a music company that operates without the funding or distribution of major record labels. These labels typically function as small- to medium-sized enterprises (SMEs). Independent labels and their artists are often represented by regional trade associations, which are in turn represented globally by the Worldwide Independent Network (WIN).

Many of the labels started as producers and distributors of specific genres of music, such as jazz music, or represent something new and non-mainstream, such as Elvis Presley in the early days. Indies release rock, soul, R&B, jazz, blues, gospel, reggae, hip hop, and world music. Music appearing on indie labels is often referred to as indie music, or more specifically by genre, such as indie hip-hop.

Independent record labels are small companies that produce and distribute records. They are not affiliated with or funded by the three major records labels. According to SoundScan and the Recording Industry Association of America, indie labels produce and distribute about 66% of music titles, but only account for 20% of sales.^{[citation needed]}

Many musical artists begin their careers on independent labels, hoping to further grow their career into signing with a record label.

The distinction between major and independent labels is not always clear. The traditional definition of a major label is a label that owns its distribution channel. Some independent labels, particularly those with successful artists, sign dual-release, or distribution only agreements with major labels. They may also rely on international licensing deals and other arrangements with major labels. Major labels sometimes fully or partially acquire independent labels.

Other nominally independent labels are started and sometimes run by artists on major labels but are still fully or partially owned by the major label. These labels are frequently referred to as vanity labels or boutique labels, and are intended to appease established artists or allow them to discover and promote newer artists.

According to the Association of Independent Music, "A 'major' is defined in AIM's constitution as a multinational company which (together with the companies in its group) has more than 5% of the world market(s) for the sale of records or music videos. The majors are currently Sony, Warner Music (WMG) and the Universal Music Group (UMG), with EMI and BMG (RCA/Ariola International) being the other two majors that made up the 'Big 5' of the 1980s and 1990s. If a major owns 50% or more of the total shares in a company, that company would (usually) be owned or controlled by that major."

Independent labels have historically anticipated developments in popular music, beginning with the post-war period in the United States. Disputes with major labels led to a proliferation of smaller labels specializing in country, jazz, and blues. Sun Records played an important part in the development of rock 'n' roll and country music, working with artists such as Elvis Presley, Carl Perkins, Johnny Cash, Jerry Lee Lewis, Roy Orbison, and Charlie Rich. These independent labels usually aimed their releases at a small but loyal audience. They relied less on mass sales and were able to provide artists much more opportunity for experimentation and artistic freedom.^{[citation needed]}