It's been said before, but what people need to understand is that the goal of this service isn't to make money- it's to balance demand. SpaceX can plan to launch be 30% more launches than their actual customers need. All those extra rockets are used for internet satellites. If there's an accident (boom) or a sudden need for more rockets, the internet satellites get delayed, and the paying customer gets a rocket. If c…
Musk himself has stated the goal is to make money to help pay for colonizing Mars.
He's an industrialist. He saw he'd need batteries for his electric cars, so he said "I should make batteries". Then he said "Who else needs batteries? Solar producers". So Tesla now makes cars, batteries, and solar panels. That wasn't just by chance, that was planned.
Now he says "I have a rocket company I want to scale up, but I don't know if demand will be there". So what does he do? He makes a company that could be profitable, but more importantly fills in the demand he wants to have for his rockets. The rocket business is bigger, which makes it more stable. The internet company might work, or it might lose money, but it's still a tool to the real goal.
This is why Amazon made AWS. Because they needed cheap, simple cloud infrastructure. Alexa/Echo helps people buy more stuff. They're building a shipping infrastructure ostensibly for themselves but probably soon enough for customers as well.