Another end of the company I work for (I'm in media operations, digital) is focused on custom content which is largely comprised of marketing materials, catalogs, etc (and they still print on paper!).

The company actually maintains a selection modern photo studios solely for use within the company. The clients still want that kind of quality. (There are a couple of glimpses of their large studios in the slides on the homepage https://www.stjoseph.com/)

Of course, I can't speak for the entire industry—but it's not dead yet! At least in the less sexy areas like product shoots for grocery stores, or car promos.