Made for the Movies

STEPHEN EINHORN’S HALL OF FAME CAREER

Stephen Einhorn

If Stephen Einhorn, ’66, a pioneering executive in the home video industry, ever participated in an autobiographical film, the movie would be a smart bet to reach the top of the charts—for more reasons than one. Einhorn earned himself a place in the Video Hall of Fame for his role in building New Line Home Entertainment and Vestron into industry trailblazers. Moreover, the story of the remarkable career path that led him to achieve such exceptional heights is a tale worth telling. “I sort of fell into it,” Einhorn says about his career in the entertainment industry. Einhorn grew up on Long Island and attended C.W. Post in the 1960’s. He recalls fond memories of serving on the student council, participating in Greek life and playing sports on the idyllic campus.

After graduating, he landed his first job, working in the corporate trust department at Chase Bank, where he developed the finance skills that would become his vocational expertise. For the next decade, he worked in the music industry, starting at Columbia Broadcasting, where he managed deferred compensation arrangements for two top recording artists, Bob Dylan and Andy Williams. He went on to hold the position of controller, first at Sesame Street Records and later at Carl Fischer Music Publishing. In 1981, Einhorn identified home videos as a nascent market on the verge of a massive expansion and accepted a position as chief financial officer of Vestron, the home entertainment industry's first and ultimately largest independent distributor. The decision that seems like a no-brainer in hindsight was anything but at the time. “I drove to their office in an industrial park by the railroad tracks in Stamford, Connecticut and the staff turned out to be four people and me,” he said. “It was in fact a newly formed company that had just released and shipped its very first home video cassettes and, from that point on, immediately started growing very rapidly.” Within six years, Einhorn helped turn Vestron’s revenue figure from $10 million into $350 million while taking the company public, managing all financial, legal and administrative functions at the company. Vestron is best known for producing and distributing Michael Jackson’s “Thriller” music video and Dirty Dancing. In 1990, due to an abrupt reneging on a large line of credit from their bank, Vestron was forced to file for chapter 11 bankruptcy, therefore requiring Einhorn to sell off the company’s assets. New Line Cinema approached him regarding a potential acquisition of Vestron’s home video business. He recalls the meeting vividly, noting, “I closed the door and said, ‘I know you guys. You’re very smart and you know what you’re doing. Frankly, you’re much better off building the operation from scratch than buying it.’” Two weeks later, New Line rewarded Einhorn’s candor and asked him to build and run their new business as president & chief operating officer. Considered a “Mini Major” theatrical production and distribution company, New Line Cinema is known for movie series such as The Lord of The Rings, Nightmare on Elm Street, Friday, Blade, Ninja Turtles, Rush Hour, and Austin Powers, as well as renowned stand-alone films including The Notebook, Wedding Crashers, Dumb and Dumber, Elf and Hairspray. Before long, Einhorn was managing a billion-dollar company and his enterprising audacity earned him veneration within the industry. He was elected president of the Digital Entertainment Group (DEG), the industry’s leading trade association in 2007. All told, Einhorn is credited with inventing numerous DVD special features and played a pivotal role in bringing to fruition Peter Jackson’s masterpiece trilogy based on the J.R.R. Tolkien novels. Collectively, The Lord of the Rings movies won “Best DVD of the Year” awards three consecutive times.

In 2008, New Line dissolved the company while keeping the label for posterity. Einhorn opted to launch his own private consultancy rather than return to the corporate world. His remarkable run has allowed him to flourish in the advisory role, working with high-profile clients. As he puts it, “In very simple terms, helping businesses operate and transition from small business to big business is what I do extremely well and find especially exhilarating.”