That's absolutely not the case. Demand for physical media not only continues to exist but it's growing as streaming services prove undependable at keeping shows available, and are willing to censor/edit shows at a whim.

For most things in the world there’s some demand, but that doesn’t mean it is a big business.

I buy vinyl but mostly listen to music on Tidal. People buy cassettes and CDs, but that’s, for all intents and purposes, a dead business.

The physical medium is not the content.