About a year ago, my 2 year Comcast contract ended and my cable bill went up to $185 and I said THAT'S IT!!! and proceeded to begin a program of cutting that to be as little as possible.
I put together a spreadsheet to figure out what my costs would be to find alternatives and how long it would take to recoup any initial costs.
https://docs.google.com/spreadsheet/ccc?key=0AglUX8TTltdsdGZIZHVlOTY0NnBTamM0VXNIekx2c1E
I purchased Ooma for phone service, a $200 outlay but in return, my service with unlimited local and LD calling is about $5/month (taxes and 911 fees). We transferred our number and it has passed the W.A.F. (wife acceptance factor) with flying colors. I even heard her recommending it to her friend a while back. (If interested, I believe I can provide a referral link that will get you this for $150 and I get an Amazon GC or something like that, assuming the program is still happening).
I had my internet bandwidth reduced from 25mbit to 12mbit.
I purchased my own Motorola modem instead of renting one from Comcast
I looked at my Comcast DVR and wrote down all the programs in our recording list and noticed that 95% of them were on standard broadcast channels. The only exceptions were a couple of kid shows. So then I replaced the Comcast DVR with a TiVo, I had our cable dropped to basic cable only and subscribed to Netflix. The TiVo included 7 months free of Hulu but we hated Hulu, especially the TiVo user interface and the fact it had commercials.
So I now pay $12/month for Comcast TV, and our total comcast bill is around $55 which includes internet. I am now working on Phase 2.
We've only had one TV in the house, but I recently picked up a used one for $200, hooked up a Windows PC (needs to have a video card with HDMI out) and bought a dual tuner Hauppauge USB based TV tuner which supports ClearQAM (so no cable card needed though you can install one if you want to purchase premier channels). I set up Windows Media Center and now basically have a 2nd TiVo with no additional monthly costs, just the initial $100ish outlay for the Hauppauge (I already had the PC with HDMI out).
If it passes the wife acceptance factor, I will do away with the other TiVo ($20/month) and just go pure WMC (though Microsoft has killed the product with the release of Windows 8 so who knows how long it will be around... the guide data would suffer first)