Apple Inc. (AAPL) has set a budget of around $1 billion to procure and produce original content, according to Wednesday reports, as its tries to compete with Netflix (NFLX) and Amazon (AMZN) .

Apple could buy and produce as many as 10 television shows with the money, the Wall Street Journal reported citing people familiar with the plan.

Apple shares were up 0.2% in premarket trading Wednesday, indicated to open at $161.92. Shares closed at $161.60 after gaining 1.09%.

The company is attempting to create original, high-quality video on Apple's music streaming service or a new, video-focused service.

The budget will be given to Hollywood veterans Jamie Erlicht and Zack Van Amburg, who started in Apple's Los Angeles office this month after exiting their Sony contracts early. They will also be taking control of the programming responsibilities from the Apple Music team, the WSJ reports.

The move comes as it tries to make a move against Netflx and Amazon, both of which have added key Hollywood showrunners to their stables this week.

Netflix has enlisted Shonda Rhimes, the creator of Grey's Anatomy and Scandal, to create new content, while Walking Dead creator Robert Kirkman signed a deal to develop a show for Amazon.

Van Amburg and Erlicht have begun to meeting with agents and have had talks about acquiring shows, according to the WSJ, with the sources saying Apple needs to have at least one hit.

Apple is looking to shore up its video offering, which has been challenged by the likes of Netflix, Last year, iTunes generated around $4.1 billion in revenue but its share of the movie rental-and-sales market has fallen to less than 35% from 50% in 2012.

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