Underground hip hop is an umbrella term for hip hop music outside the general commercial canon. The term is almost exclusively associated with independent artists, signed to small independent labels or no label at all. Underground hip hop is often characterized by having more socially conscious, positive, or anti-commercial lyrics than the mainstream; however, there is no unifying or universal theme. Many artists produce music that celebrate the fundamental elements or pillars of hip hop culture: graffiti, b-boying, turntablism, and MCing. "The Underground" can also refer to the community of musicians, fans and others that support non-commercial, or independent music.

History

Early stages

In Hip Hop's formative years the vast majority of the genre was underground music, by definition. Although the Sugarhill Gang gained commercial success in 1979, most artists did not share such prominence until the mid 1980s. Ultramagnetic MCs debut album Critical Beatdown is seen as one of the earliest example of "underground hip hop" Price, E “Hip hop culture”, ABC-CLIO, 2006. p.295. It was described that the album was characteristic of what would later be known as "underground hip hop".

In 1991, A Tribe Called Quest's Check the Rhime reached #1 on the Billboard Rap Singles Charts, but did not crack the U.S. Hot 100. Once Hip Hop music entered the pop sphere, a clear dichotomy began to form between the mainstream and the underground. Underground hip hop "scenes" or communities formed in many major U.S. cities bringing artists and audiences together for concerts, open mics, battles and parties.
Kool Keith's 1996 album Dr. Octagonecologyst was well received, described by Allmusic as being "innovative and bizzare"

2000s

It is important to note that many artists that are considered "underground" today, were not always so. Artists such as De La Soul, The Pharcyde, The Wu-Tang Clan, and others all broke the US Hot 100 Chart more than once. Yet today, they are more likely to tour with today's alternative hip hop acts, than with their successors at the top of the hip hop charts. This reflects a general: modern fans of underground hip hop music are more likely to embrace music from the genre's earlier, or classic periods, than the music on commercial hip hop radio stations. Prominent albums of this decade includes Masters of the Universe, which was described as a "refreshing alternative from the mainstream of rap".

Radio

College and Community radio stations were the traditional incubator of underground hip hop music. The radio charts that track college radio play continue to be one of the most important indicators of success for independent hip hop artists. Beginning in the late 1990's internet radio stations emerged as another powerful alternative tool for artists. Today, satellite radio offers even more venues for artists to find an audience without relying on traditional commercial radio play.

Today's Underground Hip Hop Are Mainstreamed By Internet Radio Stations, Such As: ,
and

Underground scenes

North America

New York City
Organized Konfusion, Definitive Jux, Fondle 'Em Records, Eastern Conference Records, Rawkus, Babygrande Records, Cold Chillin' Records, Decon Records, Duck Down Records, Fat Beats Records, Halftooth Records, Nature Sounds, Psycho+Logical-Records, Uncle Howie Records, Viper Records, Soulspazm Records.
Los Angeles
At the same time that N.W.A. was pioneering the sound that would become gangsta rap, many Los Angeles artists were forging an alternative underground sound. Starting in 1989, The Good Life Cafe provided an open mic forum of artists to test their talents before a tough, but supportive audience. These types of events created a breeding ground artists such as Freestyle Fellowship, Abstract Rude, Jurassic 5 and Ozomatli. Stones Throw Records, Suburban Noize Records, Delicious Vinyl, Legendary Music, Threshold Recordings, Tres Records, Ubiquity Recordings, , Up Above Records.
Toronto
Beat Factory Music, Knee Deep Records, Capitol Hill Music, URBNET Records, Groove-a-Lot Records, 7Bills Entertainment, Knowledge of Self Entertainment, Blueprint Records, Treehouse Records, Blacklist Music, Steppin' Bigga Records, Black Employed Records (aka B.E. Records).
Bay Area
ABB Records, Anticon, Hieroglyphics Imperium Recordings, Om Records, Quannum Projects, Sick Wid It Records, 40 Ounce Records
Minneapolis
Rhymesayers Entertainment, Fill In The Breaks, Crushkill Recordings.
Chicago
All Natural Inc., Molemen Records.
Atlanta
Arc the Finger Records, Shaman Work Recordings.
Houston
South Park Coalition, Black Book International.
Boston
Brick Records, Traffic Entertainment.
Seattle
MassLine Media.
Detroit
Artists of the Detroit underground hip hop scene include Esham, Insane Clown Posse, and Twiztid. Labels include Psychopathic Records and Reel Life Productions.
Indianapolis
Chief Stockton
Washington, D.C.
Oddisee, Kev Brown, Low Budget Crew
Vancouver
Figure IV Entertainment, Battleaxe Records, 108 Records.

Australia

Australian hip hop is distinct from its American counter part in a variety of ways and lacks the commercial viability traditionally associated with American hip hop music. Only a handful of Australian hip hop artists ever truly leave the underground, thus the scene is filled with independent artists struggling for recognition.
Sydney
Home to underground pioneers Def Wish Cast the Sydney hip hop scene is progressive and competitive, in recent years Bliss N Eso have become one of few Australian hip hop acts to break through to main stream success. Many of the new generation of Australian hip hop artists are based in Sydney, including Urthboy, Phatchance, The Tongue and Dialectrix. Labels such as Elefant Traks and Inertia (responsible for the distribution of much of Australia's underground hip hop music) are based in Sydney.Adelaide
Arguably the home of Australian hip hop music, Adelaide is a hub for underground rappers The Hilltop Hoods, The Funkoars and Vents all call Adelaide home, as do many of the new generation of local acts K21 and Pagen Elypsis to name a few. Adelaide is also home to independent labels Golden Era and Peep Show Entertainment.Melbourne
Melbourne's live music scene is renown for an abundance of regular performances and this is reflective in the sheer number of underground hip hop acts that reside in the city, in recent years underground artists such as Muph n Plutonic, Pegz, TZU, Pez (Musician) and Seth Sentry have emerged from the area and are beginning to see wide spread radio support. Because of the abbundance of local independent artists, Melbourne is also home to a range of independent record labels including the penultimate Obese Records. Soulmate Records, Illusive Sounds and Unkut Recordings are all based in Melbourne.Canberra
Canberra is home to Koolism the first Australian hip hop group to win an ARIA, Hau from Koolism now hosts the Triple J Hip Hop show, one of the few radio shows in Australia to cater directly to the local underground. Canberra is also home to a number of annual events that draw underground rappers from across the country to the state, including Rhyme Intervention a festival to raise money for the Australian Cancer Council.

Europe

London
BBE Records, Big Dada Recordings, Warp Records.Berlin
Rapster Records.