A catalog of music from high-profile artists including Bruno Mars, Ed Sheeran, the Red Hot Chili Peppers, and others will populate Apple Music. According to a Bloomberg report, Apple has struck a deal with Warner Music Group to offer its songs on its music streaming service, as well as iTunes. This is the first major label agreement for Apple Music since its inception two years ago, and Apple hopes to ink a pact with Sony Music Entertainment soon as well.

Apple still plans on negotiating with record labels to pay them lower rates for Apple Music subscribers. We first heard of these plans back in June, when Apple Music's first contracts were expiring. With on-demand music streaming services like Spotify and Apple Music having become the main source of sales for the record industry, labels may be willing to accept less from tech giants like Apple. But all of this hinges on the growth of these music streaming services—record labels may not mind getting a smaller percentage of the money provided subscriber numbers keep increasing.

Until now, Apple paid record labels 58 percent of sales, which is higher than what Spotify pays. According to the report, Apple now wants to pay labels 55 percent. It's possible that rate could decrease even more if Apple Music meets subscriber targets that please both Apple and record labels. Spotify now pays labels 52 percent of sales instead of its previous rate of 55 percent.

It turns out digitization isn't killing the record industry after all. Global music sales were up 5.9 percent last year to $15.7 billion, and Goldman Sachs estimates it could grow to $41 billion by 2030. Currently, much of this growth can be attributed to the popularity of paid music streaming services. As of this summer, Spotify has 60 million paid subscribers and Apple Music has 27 million paid subscribers.

Apple has also been trying to boost the appeal of Apple Music in every way possible. It recently debuted original shows including Carpool Karaoke and Planet of the Apps that are only available to Apple Music subscribers. The company plans to spend $1 billion in 2018 to "procure and produce" original content. While that content will likely be spread between Apple Music and iTunes, any quality content added to Apple Music will likely entice more people to subscribe, which is good news for both Apple and record labels in the long run.