When I was ready to ditch cable, I started with Netflix and Hulu and got a digital TV antenna and it’s pretty sweet. Once you buy the TV antenna whatever channels you get in your local area are free (I’d actually forgotten there was still such a thing) and with Netflix & Hulu at $8/each it’s a beautiful $16 solution.
http://www.mikecornelison.com/the-end-of-a-20-year-love-affair