Correct, but I believe those failures were during their first “Commercial” satellite contracts, which ended in failed orbit and destruction of client property (the satellite).

As someone in product development, this sort of failure at the start of your product launch (no pun intended) can make/break your reputation as a trusted source for that market. People will take their business to the product that is proven, rather than taking a high gamble on something that has a higher probability to fail and destroy your goods.

SpaceX has been through many failures themselves, but they broke through and created a reliable & reusable launch system at a lower cost offering. Other companies, though more expensive, have at least proven reliability and minimized failed contracts.