[raganesh]

Satellite internet service should provide major operational cash flow for SpaceX. That too on recurring basis.

Rocket launches generate revenue once per launch and for the foreseeable future, there will only a limited number launches per year.

Very good move by SpaceX.

[lev99]

Can you please explain why recurring revenue is significantly better for a rocket company?

My understanding is Falcon 9 launches are limited by manufacturing and launch pad limitations and not market demand. Launching satellites take away from both of those, so he clearly thinks the direct to consumer business is worth it.

[raganesh]

Recurring revenue - launch the satellite constellation once and generate monthly subscription revenue potentially running into billions of dollars a month.

Manufacturing limitations & launch pad availability, once they are resolved (along with launcher reuse) will lead to a point where there is not enough demand to fill the launch roster. This internal demand will help them fill it up.

[lev99]

I always hoped ISS resupply and mars transport would work as reoccurring revenue.

This is probably a great use if he has extra rockets and launch pad time, but it seems a bit of a side project compared to manned space travel.

[drawkbox]

This venture goes hand in hand with the goal of manned space travel and going to the Moon/Mars, explorers are going to need an internet uplink on either and this allows it to be separate from just large spacecraft providing that.