It looks like Apple (NASDAQ:$AAPL) might be trying to compete with the likes of Netflix (NASDAQ:$NFLX) and Amazon (NASDAQ:$AMZN). According to Wednesday’s reports, the tech giant has set a budget of roughly $1 billion to acquire and produce original content.

With this money, the company could purchase and produce as many as 10 television shows, the Wall Street Journal reported, citing people close to the plan. In pre-market trade Wednesday, Apple shares were up 0.2%. After going on to gain 1.09%, the shares closed at $161.60.

Here’s what we know so far:

• The hope is that original, high-quality video will be produced and featured on Apple’s music streaming service
• The budget will be given to Jamie Erlicht and Zack Van Amburg, who started in Apple’s Los Angeles office in August after departing from Sony.
• Erlicht and Van Amburg will be in charge of the programming responsibilities from the Apple Music team

It shouldn’t come as a total surprise to hear that Apple made such a move. It’s been known for a while that Apple has been trying to play catch up with Amazon and Netflix, and now both companies have added key Hollywood showrunners to their networks this week.

As the pressure continues to rise, Van Amburg and Erlicht have been meeting with agents and have had conversations about acquiring shows. According to the WSJ, sources have said that Apple needs to have at least one major hit.

Overall, if the tech giant were to succeed with this venture, it is very likely there will be some benefits for those interested in the application software industry.

Featured Image: twitter