It's not dead. It's just that it's not as profitable as it used to be in getting a placement on a major record. It depends on your inherent social network within the industry. If you're selling beats to run of the mill rappers on the internet, your price point will be invariably lower than having a beat passed around among A&R and real music industry contacts.
The democratization of music has led to great things, like giving one accessibility to the technology to make professional beats. However, if you can couple that production with songwriting-- you're already in a different league.
The downside is the competition, which brings down the price point of the production. Any kid with a laptop can make a decent beat these days, the barriers to entry are so low now that it's almost a joke. Before, you had to have thousands of dollars in sampling equipment, studio gear and synths just to get something palatable in front of a producer, rapper or exec.
I would say learn to differentiate yourself by doing the following:
1) Understand and learn the craft of SONGWRITING not just "making beats."
2) Learn to professional mix your songs. Take classes if necessary.
3) Learn as much as you can about the engineering and scientific side of the recording process.
Again, this will help you, but you will also encounter more barriers as pay-to-play universities like "Full Sail University" are training folks in these particular fields (except songwriting, which takes time to learn). Then you have a bunch of folks who have technical knowledge you can compete with.
Again, it's back to the basics: building a PERSONAL NETWORK you can rely on. Also, being in the right area. You're just not going to be the hottest producer in the world living in Fargo, North Dakota, no matter how many hot beats you make. I don't care if it's the next greatest album, you need exposure to the right contacts.
Hope that helps.
