Got rid of DirecTV and only have basic cable that comes with high speed internet. Use a dedicated PC with Windows Media Center as a DVR, use Hulu and other sites for programs not available on basic cable. Saving $120/mo taking this approach!
We are doing something similar. No cable at all. No land phone line. $20 DSL + $9 Netflix streaming + Media PC for TV + OTA Antenna = all the TV I need. We have a Wii hooked up to the kid’s TV to steam Netflix. We are also going to get a $60 Roku player for the bedroom TV to stream Netflix or other media on the home network.