I have been, and am, in exactly this situation. I got fed up with paying new money to watch old programmes, and got rid of my rented TV and Video.
It took about four years to convince the TV Licencing Beareau that I no longer had a TV; I was getting threateining letters etc. I told them they could come round and look, provided they picked a time conventient for me, unless they wanted to pay me for the time I'd lose by not being at work.
No one came round, but I stopped getting the letters.
The, a cuople of years ago, I contacted them to say that I didn't want to watch TV, but I missed playing my vidoes, and they said that as long as the TV and video weren't tuened into TV channels, I wouldn't have to pay a licence fee.
So that's what I did. They did come round to check that time, but when the bloke saw how many videos I had, he just nodded and said ti was understandable. I received a letter from them to say that they'd put it on my file that I didn't have a TV, and that they'd check in two year's time to see if that was still the case.
ps For those of you who've not tried doing ithout TV, give it a go! You'd be surprised how much your social life improves, and how many books you manage to find time for