I dropped my cable a few months ago and instead am using the following over my medium-speed internet from Cox Cable (around $50/mo): Roku box (which provides NetFlix, and now YouTube, Weather, plus a few other channels I don’t use much), plus Ooma (internet phone calls for $180 up front for the box + $3 per month). I also bought a $15 rabbit ears antenna that gets me 12 local over-the-air channels in crystal clear Hi Def (really) It is working really well.
I suggest you pickup up a decent rabbit ears antenna for around $15 from Best Buy (with the dial to adjust the tuning) and see how many channels you can get at your locaation. That will lead you in the direction of how you want to move forward. For my location, it works great. People are shocked when they see that I am getting all the local stations crystal clear for FREE.
You will have to experiment to find the right location/positioning for the rabbit ears antenna. For me, I set it up in a spot near the TV where I never have to move it. If the rabbit ears works, you could probably upgrade to a more modern-looking antenna for around $50-100 – but I haven’t bothered. People laugh at a high def TV connected to a rabbit ears antenna but they can’t believe how clear it is.
