This seems less of a "Netflix-killer" and more of a "HBO-killer." With WarnerMedia trying to turn HBO into Netflix, focused on broad array of content instead of the very best -- Apple may have the chance to control "high-quality content."
HBO was always know as the place where artists wanted to make their content, can Apple now be that place? They've already been accused of being too hands on with the content, so I doubt they will actually be able to pull it off.
That being said, even if they become HBO, this doesn't seem to be a big enough (or differentiated enough) business to be worth building IMHO.