There's a solid opportunity for a good free video editor for hobbyists and creators, who might not want to spend any money just yet. If you get these users on your software, you're much more likely to convert a sale.

The free version of Resolve is still limited for more serious / professional applications; e.g. not making use of hardware acceleration, not having certain effects, and not processing certain professional workflow codecs.

With this strategy, Resolve is essentially the "go-to" for newbies into video editing.

What's so great about Resolve licensing is their lifetime license. Pay $295 once, get it forever. For commercial productions, Blackmagic gets their $$$$$ from their cameras, physical control panels and hardware, etc. These, again range from good value (for entry and mid level) to expensive.