DISNEY TO DISTRIBUTE FUTURE BIRNBAUM FILMS.

Byline: Dave McNary Daily News Staff Writer

Walt Disney Co. announced Thursday that it has signed a distribution deal with high-profile producer Roger Birnbaum for up to five movies a year through 2003.

The entertainment giant said the deal with Birnbaum's newly formed Spyglass Entertainment calls for Spyglass to finance the projects with Disney handling distribution in the United States, United Kingdom, Australia and Latin America.

The deal reflects Disney's strategy of spending less on live-action movies, which have provided lower profits than most other operations, while continuing to send a full pipeline of product to multiplexes. ``As we reduce our investment in our release slate we look forward to distributing first-tier, independently financed films,'' Disney studio chief Joe Roth said Thursday.

``This deal is pretty consistent with what Disney has said it wanted to do,'' said Stewart Halpern, an analyst with ING Barings Furman Selz. ``It's a way to make a low-risk profit and maintain an appropriate volume for its distribution infrastructure.''

The pact calls for Birnbaum's Caravan Pictures to stop operations following release of New Line's ``Rush Hour'' and two upcoming Disney movies - ``Simon Birch'' and Eddie Murphy's ``Holy Man.''

Spyglass' major coming projects include ``From Alice to the Ocean'' with Julia Roberts as a producer and star; ``The Hitchhiker's Guide to the Galaxy,'' based on Douglas Adams' best-selling novel; ``Cosmo Cop'' with Murphy; and remakes of ``The Errand Boy'' and ``Old Dark House.''