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I have no cable or satellite at my house. We don't watch TV but have a rather extensive DVD collection from our non-frugal days (600+ movies), plus we check out DVD/Blu-Rays from the library all the time which is walking distance from our house.
We do have internet, however, which costs us $50/mo. That's a necessity, as we more than make up for the cost of that through my wife's Etsy shop sales, saving money on certain items through online shopping, the e-books my wife has published, and a little bit of extra money through blogging (adsense, affiliate marketing, etc.). We probably MAKE $200/mo or more through these internet revenue streams (and growing).