Apple is going into the movie business

Apple has decided on its next Hollywood act: making feature films.

A deal is near for the rights to an animated movie as part of its upcoming slate of original video offerings, according to people familiar with the matter. Apple is in talks with Cartoon Saloon, an Ireland-based, Oscar-nominated animation studio, said the people, who asked not to be identified speaking about private negotiations.

The movie has yet to be made and is more than a year from release, but Apple has been in talks to buy distribution rights for the US and some other countries, the people said. It’s unclear how Apple plans to make the movie available, but a theatrical release, necessary to qualify for Academy Awards, is possible, one of the people said. Other potential movies are also in the works, the person noted. Apple and Cartoon Saloon had no immediate comment on Thursday.

The deal hasn’t closed and could still fall apart, but the talks mark a new level of ambition for Apple’s plan to take on Netflix, Google and Amazon in the booming online video market. Apple has struck several deals for original TV shows and documentaries, including one about singer Ed Sheeran. But the company hasn’t announced any movies so far.

The iPhone maker has been one of the biggest sellers of other companies’ shows and movies through its iTunes store, so it has existing ties to the entertainment business, mostly through executive Eddy Cue. Its online video push has expanded into funding original content as the Cupertino, California-based company tries to double services revenue.