Amazon has announced that it will add to the large library of old TV shows by developing an original lineup of children's TV shows and sitcoms. If successful, the TV shows could be a major draw for parents and children and give Netflix and Hulu, which offer streaming of TV shows and movies, a run for their money.

Hulu also offers original content, including comedy Battleground and Martin Spurlock's reality series A Day in the Life, along with four other shows that are set for release in 2013. Netflix offers similar shows, including Kevin Spacey's House of Cards and the fourth series of cult-sitcom Arrested Development.

Amazon has been pushing for original content through its content development division, Amazon Studios, launched in November 2010. It has 15 movie projects in development, and is seeking proposals for children and comedy programs. One proposal per month will be chosen for development, and the chosen proposals will get $55,000 and a share of merchandise sales, royalties and bonuses. The creator of proposals will receive $10,000 and net up to five percent in royalties.

TV shows will get distributed exclusively through the Prime service, and will rival cable and satellite TV programs in production quality and screenwriting.

"Amazon Studios wants to discover great talent and produce programming that audience will love. In the course of developing movies, we've heard a lot of interest from content creators who want to develop original series in the comedy and children's genres. We are excited to bring writers, animators and directors this new opportunity to develop an original series," Roy Price, director of Amazon Studios, said in a press release.

Joe Lewis - previously Director of Production at 20th Century Fox - will be leading Amazon's move into television. Fortune discovered the hiring through Lewis' LinkedIn page, and the role has since been removed.

Hulu plans to spend $500 million on TV and movie programming this year, to complement its broadcast and cable broadcasts.

Amazon Prime gets users free two-day delivery on an unlimited number of items, for $79 a year.

(reported by Jonathan Charles, edited by Dave Clark)