I found it interesting that others always talk about their exorbitant cable bills but never to seem to do anything meaningful about it! We were tired of paying a high bill for cable service because we utilized perhaps 5% of the programming. So we upgraded our internet package and dropped cable and moved to all internet: Netflix and Hulu for movies and TV; paid subscriptions for sports; and local/national news for news. I think there are pluses and minuses in doing so. Pluses, we watch programming we are interested in watching. Minuses, some of the internet connections don’t seem to be as stable as cable and the definition many times is not as good as HD we had with cable. If fiber optic was available in this area I would probably give it a try since it has the capability of added speed. All in all, however, I think we have adapted pretty well to the Internet only scheme.
There are other resources such as other set-top boxes that connect you directly to the programming but that adds cost. Right now we are happy paying what we pay for what we get. Our cable provider wanted to give us a $12 discount for being a loyal customer for over two years! Ha ha!
I think if more people dumped their cable in favor of Internet derived media then we would have two things: 1) better Internet only programming and 2) better Internet quality.
As for Netflix vs HBO perhaps that competition will lead us in the right direction since a competitive market between cable and Internet should improve the above points. Time will tell!