We dumped our landline quite some time ago. We dropped cable tv and now use cable for internet only. We have some interior antennae, but we're near the edge of the broadcast reception area, so reception is bad on the first floor and iffy on the second. We use Netflix, Hulu+, CBS and iTunes (AppleTV) primarily. If there's a show we can't get due to proprietary cable contracts (thank you, BBC America and SyFy channels), we either wait until it's available on Netflix a year later or buy the season pass on iTunes.
With Hulu+ ($4 extra per month) ads are skipped. We tried it for a month to see if it was worth the extra money, and we won't go back. We dropped Amazon Prime just because it wasn't getting that much use. Even though we have to use different apps/services for different shows, we don't feel that we've lost anything and our monthly bill is substantially lower. Instead of having stuff on the DVR in case we want to watch something, we now have to look for something we specifically want to see. It means that we waste less time watching stuff we don't care about. We avoid most commercials (CBS needs to get with the program), and we don't feel like we're missing anything.
If I had another option for broadband internet besides cable, I would have strongly considered it. In our neighborhood, capitalism is illegal, so local government will only allow us one service provider.