My questions:
Would you be able to keep you satellite dish after cancelling SKY? If it were new, they might want it back, but unlikely, as many ISPs never ask for the router back if you leave, although they may charge for the installation if you leave within X years of starting a subscription.
If you can keep the dish, you could get Freesat (essentially the same as Freeview, just using a dish instead of a traditional aerial, although I'm not sure if you can record 1 or 2 channels and watch a third/recorded program like using Freeview PVRs), but you'd have to be buy a Freesat PVR (equivalent to the Sky box, in the region of £130 - £250 depending on the make and features you want).
As you TV is likely (unless it's as old as mine [2007] which only has an old analogue tuner, even though it's an LCD TV) to have a Freeview tuner, it can be connected directly to an aerial (indoor or standard outside one) via an old style co-ax cable. You just get live Freeview only. Add a Freeview PVR for between £130 - £250 to gain the recording facility I mentioned above.
The TV may be new enough that you could connect it via a network cable to a hub or it has a wifi facility, or the PVR could have one (more expensive) to provide access to internet-based on-demand (including netflix on some) and catchup (iPlayer, ITVhub and Freeview Play generally [still a bit limited - only 8 days back and not all Freeview channels or shows, but getting better]).
You could buy a streaming player - I'm not that familiar with them, only doing a quite check on the Richer Sounds website. You may be a bit more limited about the content (depending on which make you go for), but I'm not sure. It may also depend on the overall household ISP bandwidth what is possible.
I suppose also it depends upon how expensive it would be to have an aerial installed and the signal strength of Freeview in your area. Note also that Freeview does come with radio stations covering most national ones and a reasonable number of local ones, if your interested.
Not sure if you can somehow just use the internet to watch live TV from the main 5 'terrestrial' channels - never really tried except for Sports events (via the Sports News pages on the BBC), which I found (admitedly with only ADSL and 6Mbps) to be glitchy.
Here's the Freeview website (not great, but OK) to explain what's available (useful to go to the page to see what channels your area can receive - enter your post code):
www.freeview.co.uk/
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