AT&T tried to calm investors Wednesday in an 8-K filing with regulators, reporting that although it has likely lost 390,000 DirecTV satellite and U-verse video customers in the last three months, it has gained 300,000 online streaming customers for its DirecTV Now TV service.

The company is required to report materially adverse changes to its business to shareholders, and AT&T elected not to wait until its next quarterly earnings report to divulge the substantial losses in video customers. DirecTV Now gains are not expected to be a significant panacea for investors because AT&T reportedly makes little or no profit from the service since it launched in late 2016.

AT&T avoided blaming cord-cutting for customer losses:

The video net losses were driven by heightened competition in traditional pay TV markets and over-the-top services, hurricanes and our stricter credit standards. The decline of traditional video subscribers negatively impacts our Entertainment Group revenues and margins, resulting in an adjusted consolidated operating income margin that will be essentially flat versus the year-ago third quarter.

Overall, the company confessed it lost 90,000 total video subscriptions once DirecTV Now’s gains were included.

AT&T told investors earlier this year it was substantially cutting marketing of its U-verse video service and began encouraging customers to subscribe to DirecTV satellite service instead. But the satellite TV service is rapidly losing customers as well. Wall Street analysts suggest the only explanation for this is cord-cutting.

“The issue is in the acceleration in cord-cutting, and the prevalence of [online streaming], not each other,” said Craig Moffett of MoffettNathanson. “It is becoming increasingly clear that the wheels are falling off of satellite TV” noting that Dish Networks subscriber numbers appeared dismal as well.

Moffett predicted with the ongoing video losses impacting satellite television, he thought it unthinkable the two satellite companies might consider merging.

AT&T’s DirecTV Now is aggressively pursuing agreements to include local network stations in its online streaming platform.

This week, the company announced it added CBS and CW stations in more than 75 markets reaching over 70% of U.S. households, and now carries 155 local stations on its lineup. As part of that agreement, DirecTV Now also now offers customers the option of adding Showtime at what AT&T calls the cheapest price available from any streaming service — $8 a month. Access to the Showtime Anytime app isn’t ready yet, but will be “in the coming weeks,” claims AT&T.

Subscribers to the “Go Big” package will soon find CBS Sports Network added to their lineup. Those with at least the “Just Right” package will see Pop added as well. On Demand programming from CBS and The CW will begin in October.

Here’s the current lineup of TV markets and stations available on DirecTV Now as of late September:

DirecTV Now is continuing to boost the number of live, local stations included in its streaming service with the addition of more than 25 local ABC, NBC and Fox affiliates, most in smaller cities.

The additions bring the station total to nearly 130 stations in 70 cities.

“We’re giving DirecTV Now customers more live local channels to stay connected, with more channels coming,” said Daniel York, senior executive vice president and chief content officer of the AT&T Entertainment Group.

The new stations:

DirecTV Now customers in 14 major TV markets will soon have live access to their local CBS and CW affiliates through the streaming service, with 30 additional ABC, FOX and NBC affiliates soon to follow in other cities.

“This is another key milestone in bringing DirecTV Now users access to their favorite entertainment, news and sports from all the major broadcast networks,” said Daniel York, senior executive vice president and chief content officer – AT&T Entertainment Group.

In “the coming weeks” DirecTV Now will also add on-demand access to CBS and CW programming for the benefit of those who live outside of a city where a live station stream will be available. The agreement with CBS includes Showtime ($8 per month), CBS Sports Network (available on packages starting with ‘Go Big’), and Pop (added to packages starting with ‘Just Right’). Customers who subscribe to Showtime on DirecTV Now can also use Showtime Anytime for on-the-go access.

Live streaming CBS and CW stations will initially be available to customers within these markets:

• New York
• Los Angeles
• Chicago
• Philadelphia
• Dallas – Ft. Worth
• San Francisco–Oakland–San Jose
• Boston
• Detroit
• Minneapolis-St. Paul
• Miami-Ft. Lauderdale
• Denver
• Sacramento–Stockton–Modesto, CA
• Pittsburgh
• Baltimore

If you are a DirecTV Now customer, check your email for an exclusive invitation to become a beta tester of the service’s new cloud based DVR service.

Little is known yet about the scope of the service or how many customers have been invited (Stop the Cap! HQ is a subscriber and we were not) to take part in the trial about to get underway.

One of the most requested features from cord-cutters is a suitable replacement for the cable or satellite provider’s DVR. Several services, including PlayStation Vue, Hulu, Sling TV, YouTube TV, and fuboTV now offer DVR-like features, although some don’t allow customers to skip commercials and others come as a costly add-on. AT&T, owner of DirecTV Now, has yet to indicate what, if anything, it plans to charge subscribers for the service or what storage capacity it will offer.

The company has focused efforts on fine tuning its streaming service to resolve the capacity issues and technical faults that were common during the first few months of service.