I was paying entirely too much for basic cable, particularly when it was a bunch of channels I had no use for. So, I decided to cancel my basic cable and buy a Boxee Box. It was $200 at the time, they are ~$150 now. It works off of the internet and aggregates shows from all of the major networks, as well as free movies online. It can also utilize Netflix if you have an account with them.
In addition to the Boxee Box, I put an HD antenna ($70) on my roof to get the local broadcast channels. Up front, I spent a little bit of time and $270, which paid for itself after only 6-8 months. Now, I get my shows for free, and am not paying for a bunch of channels I don't need.
All that being said, make sure to do your research. There are a lot of internet media devices available, and not all of them provide all content. It's important to look into what content the devices can make available, and make a decision based on your viewing habits.
More information about formatting options