The promotional rate on my cable service is coming to an end, so it's time to consider the options. Cable is expensive!

I'm entertaining the option of switching internet companies (great 12 month promo rate available); keeping Netflix and adding Hulu Plus to cover a lot of movies and most TV; adding Amazon Prime for a la carte TV and movie purchases; and getting a Kindle Fire to manage it all (and add mobility plus other stuff). Oh and an HD TV antenna for regular broadcast stuff.

This all seems a bit convoluted, but it would save me money, plus the added benefits of the Fire. We watch practically everything when we want on DVR anyway. I'm a bit surprised the cable companies haven't lowered their prices in order to compete; I guess they're still making out pretty good clinging to enough customers.

Who has converted to the on-demand entertainment model? Benefits? Drawbacks? Is Amazon Prime worth it?