Apple has entered a multi-year agreement with entertainment company A24 to create produce films for the company, sources familiar with the agreement told CNBC.

The movie deal comes as Apple is ramping up its foray into original content. The company plans to give away free movies and TV shows to device owners sometime next year as part of a strategy to build consumer loyalty, according to several sources familiar with negotiations.

A24 has been a critics' favorite, releasing several Academy Award-winning films including "Room," "Amy," "Lady Bird," and "Moonlight," which won the Academy Award for Best Picture, Best Adapted Screenplay and Best Supporting Actor in 2017. The New York-based media company started in 2012. The terms of the deal were not disclosed.

Other individuals and companies slated to produce content for the upcoming Apple offering include Oprah, Sesame Workshop and a reboot of "Amazing Stories," which will be produced by Steven Spielberg and Bryan Fuller.