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The SpaceX internet service isn't just about building a new product- it's about smoothing demand for SpaceX's primary business. Space launches are a high-varia

by mabbo 10y ago

The SpaceX internet service isn't just about building a new product- it's about smoothing demand for SpaceX's primary business. Space launches are a high-variability industry. Sometimes there's lots of demand, sometimes you lose the ability to launch for 4 months because of a minor accident (or $250m explosion...). This internet service is a new customer who can smooth demand out. SpaceX sets a goal for launches for a year, and gives the internet company 20% of their launches. If they oversell, some internet launches get cancelled. If they undersell, the internet company buys extra. Either way, booster production remains smooth. Every other customer is afraid of using used boosters? No problem, watch SpaceX use them themselves. And if the internet thing doesn't turn out to be profitable? Ah well, the capital that financed it probably came from outside anyways.

zitterbewegung 10y ago
If the internet isn't profitable then don't they also not smooth out demand , use up money that could be used to improve their rockets and or have actual profit ?
babyrainbow 10y ago
>And if the internet thing doesn't turn out to be profitable? Ah well, the capital that financed it probably came from outside anyways... So like paying one credit card bill with another credit card. Right?
- giarc 10y ago
  Except those outside investors won't be paid back if it fails.
  - gondo 10y ago
    isn't that exactly the same risk for any other kind of investment? if it works out, you get paid, if it fails you loose your money
    - giarc 10y ago
      Yes, but my response was in reference to the comment that SpaceX internet endevour investment was similar to paying one credit card with another. In that case, the credit card companies will come knocking. In the SpaceX case, the investors involved with the internet business, if it fails, won't come knocking the same way a credit card company will. They may be entitled to some IP and physical goods, but they can't just ask for their money back, plus interest.
Animats 10y ago
The SpaceX internet service isn't just about building a new product- it's about smoothing demand for SpaceX's primary business. Space-X's problem is not lack of demand. Their problem is that they can't keep up with their launch backlog. Their latest stall in launches after the blowup on the pad last September cost them about $250 million. The Falcon Heavy is at least four years late. The Brownsville launch site slipped two years.
- arijun 10y ago
  If the whole first stage reuse thing pans out they could be looking at 1) faster average turnarounds as the reuse customers require less time to service and 2) more reusable hardware than customers willing to fly on certified pre-owned rockets.
  - lmm 10y ago
    If everything goes as planned they will be immensely successful, sure. But when have they ever accomplished any of their plans on schedule? Clients are starting to get tired of SpaceX's wildly overoptimistic forecasting - see AsiaSat switching providers, and that was before the recent failure. A slow estimate you can deliver is better than a fast estimate you can't.
    - Animats 10y ago
      Yes. Here's Space-X's launch manifest.[1] They used to put dates on future launches, but that got to be too embarrassing. Then they just listed them in order of projected launch. Now they're alphabetical. About half of those could be launched now if Space-X was ready. Some, like ISS resupply missions, are supposed to happen periodically. Most of the satellite launches are waiting on Space-X, not the payload. Space-X already lost Inmarsat, which will use ArianeSpace instead. [1] http://www.spacex.com/missions http://www.spacex.com/missions
      - greglindahl 10y ago
        You're overstating the Inmarsat situation: Inmarsat moved one satellite to ArianeSpace: http://spacenews.com/inmarsat-shifts-satellite-from-spacex-to-arianespace/ http://spacenews.com/inmarsat-shifts-satellite-from-spacex-t... Inmarsat still has 2 launches on the SpaceX manifest. Money quote: "Inmarsat is looking forward to continuing to work with SpaceX going forward," the company said in its statement.
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by mabbo 10y ago

zitterbewegung 10y ago

If the internet isn't profitable then don't they also not smooth out demand , use up money that could be used to improve their rockets and or have actual profit ?

babyrainbow 10y ago

>And if the internet thing doesn't turn out to be profitable? Ah well, the capital that financed it probably came from outside anyways... So like paying one credit card bill with another credit card. Right?

giarc 10y ago
Except those outside investors won't be paid back if it fails.
- gondo 10y ago
  isn't that exactly the same risk for any other kind of investment? if it works out, you get paid, if it fails you loose your money
  - giarc 10y ago
    Yes, but my response was in reference to the comment that SpaceX internet endevour investment was similar to paying one credit card with another. In that case, the credit card companies will come knocking. In the SpaceX case, the investors involved with the internet business, if it fails, won't come knocking the same way a credit card company will. They may be entitled to some IP and physical goods, but they can't just ask for their money back, plus interest.

Animats 10y ago

The SpaceX internet service isn't just about building a new product- it's about smoothing demand for SpaceX's primary business. Space-X's problem is not lack of demand. Their problem is that they can't keep up with their launch backlog. Their latest stall in launches after the blowup on the pad last September cost them about $250 million. The Falcon Heavy is at least four years late. The Brownsville launch site slipped two years.

arijun 10y ago
If the whole first stage reuse thing pans out they could be looking at 1) faster average turnarounds as the reuse customers require less time to service and 2) more reusable hardware than customers willing to fly on certified pre-owned rockets.
- lmm 10y ago
  If everything goes as planned they will be immensely successful, sure. But when have they ever accomplished any of their plans on schedule? Clients are starting to get tired of SpaceX's wildly overoptimistic forecasting - see AsiaSat switching providers, and that was before the recent failure. A slow estimate you can deliver is better than a fast estimate you can't.
  - Animats 10y ago
    Yes. Here's Space-X's launch manifest.[1] They used to put dates on future launches, but that got to be too embarrassing. Then they just listed them in order of projected launch. Now they're alphabetical. About half of those could be launched now if Space-X was ready. Some, like ISS resupply missions, are supposed to happen periodically. Most of the satellite launches are waiting on Space-X, not the payload. Space-X already lost Inmarsat, which will use ArianeSpace instead. [1] http://www.spacex.com/missions http://www.spacex.com/missions
    - greglindahl 10y ago
      You're overstating the Inmarsat situation: Inmarsat moved one satellite to ArianeSpace: http://spacenews.com/inmarsat-shifts-satellite-from-spacex-to-arianespace/ http://spacenews.com/inmarsat-shifts-satellite-from-spacex-t... Inmarsat still has 2 launches on the SpaceX manifest. Money quote: "Inmarsat is looking forward to continuing to work with SpaceX going forward," the company said in its statement.

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