Earlier quoted context omitted.
> If anything, companies try to double-dip and serve multiple masters. See: the security and privacy mess in smart TVs. Last I checked, LG wasn't giving their TVs away. This is true, and you transition from customer to eyeballs once you take delivery of the product, but it is also tempered by the fact that they would like to sell you your next TV as well.
Google has the same incentive to consider users. If your eyeballs go away they have no recourse for tomorrow. This is no doubt why they give their services away. If they thought they could achieve similar market share while also charging you they certainly would. (And they do whenever they see the chance.)
In fact there is a pretty strong argument that they are leaving money on the table by not doing so.
Imagine you like your gmail and you have had it for the past decade. If Google charges only $1 per year across say a billion users that is a billion dollars.
Even if they lose some users at the margin it may makes sense...
According to wikipedia gmail had 1.5 billion active users in 2019.
As internet services mature and stop growing exponentially it makes sense to charge for them.
Yes it is true that some might switch but what makes more sense from the perspective of most users?