What about the idea of downgrading cable to basic cable to get locals and keep their internet but then get the rest of your shows and stuff via chromecast, Apple TV, ps3 or similar?
For some people, this strategy could make sense. For example, my cable op is my broadband provider, too. If I drop TV, I have to pay for them to come out and install a tap to prevent me from harvesting free TV from the coax that brings in the broadband. So that one-time fee has to be factored into the equation when calculating savings.
Also, I get a bundle discount if I have TV and broadband. However, I had an even bigger discount when I got phone from them, too, but the savings of going with Vonage outweighed the loss of that additional discount.
My contract expires in August 2014. So next summer I'll be revisiting Amazon Prime, Netflix, et al to see if they've added more or hopefully all of the cable shows that my wife watches. If not, then I'll drop at least to the most basic cable bundle -- local broadcasters, HGTV, CNN, et al -- and get Prime or whatever has the TV lineup that best matches what my wife likes. Right now I've got a two-month free trial of Hulu Plus, and I'm not too impressed. Way too many shows that are watchable only on a PC but not on a Roku or other OTT STB.
I'm also keeping an eye on ESPN's ratings. Its average viewership fell 20 percent in the past year, and its prime time audience fell 12 percent. I'm hoping that cable operators will use this as a negotiating tool with Disney to put sports where it finally belongs: on its own tier, instead of forcing everyone to buy it. The ESPN family alone adds $5/month.
Unfortunately I believe that everything we're going through now on cable will simply shift to Roku, Prime, et al. For example, cable ops often shut off networks when they can't agree on a new contract. Eventually they agree, and subs have to bend over. Netflix dropped a lot of A&E and History programming almost a year ago when that contract expired. Networks have what a lot of viewers want, and they and the OTT providers know it, so in the end, not a whole lot might change. I hope I'm wrong.