What is an independent film producer?

Any definition of "film producer" is inexact at best.But there is a reason for this.
Film producers, like others involved in the film business, are defined by what they do. Producers have many functions, and their contributions are simultaneously more complex and also more ephemeral than the functions of actors or directors.

When we think of independent films we are referring to pictures designed for release in movie theaters that are not produced and distributed throughout the world by one of the eight major studios: Disney, Dreamworks, Fox, MGM, Paramount, Sony, Universal and Warner Bros.
Typically, independent pictures are financed by "pre-sales" contracts from distributors that are discounted and cash flowed by a bank, and often supplemented by private money, and, if they qualify, from subsidies and tax incentives from abroad. The budgets range from tens of thousands of dollars to over $30 million, but the vast majority are produced for $200,000 to $10,000,000.

Independent film producers are a relatively recent phenomenon. Up until the 1960's or so, virtually all films were produced by major studios. With the advent of the non-studio film (such as "Billy Jack" and "Easy Rider"), non-studio film producers began to supplement studios in terms of producing movies (but still the same the major studios continued to dominate development, financing, and distribution). Today there are an estimated 1500 independent films produced each year in the United States.

The most important difference between an independent producer and a producer who works on a studio picture is that the independent producer is responsible for handling an entire additional set of legal, business and financial roles that are customarily handled by studios on pictures produced, financed and released by the majors. Failing to understand those added roles can lead to disaster.

A great idea for a movie is worthless without proper business and legal implementation.

In implementing the business and legal management of producing a movie,
there are seven primary functions which the independent film producer has:

(1) business owner/manager;
(2) project developer;
(3) project packager;
(4) project financier;
(5) physical film producer;
(6) distributor/distribution arranger; and
(7) distribution and asset manager.