I disconnected my satellite TV 3 years ago. Saved about $85/mo. Since then I have:
a) Installed a very large old TV antenna in my attic and hooked it up to 2 TVs in my house. Cost: $0. Great HD picture.
b) Purchased an original Roku. Still works great. Bought it refurbed from Woot.
c) Purchased a Boxee Box. It will play files that the Roku won't, but it's a dead-end, discontinued product so I wouldn't recommend buying one if you can still find it.
d) Paying for Hulu Plus and Netflix. I think my total monthly cost is $16. I could probably kill the Hulu, but we use Netflix all the time.