One day in 2014, I unplugged my TV completely, arial and power then cancelled my direct debit for the the TV License.
I was told they would send someone out to check, so I told them thats fine and I'm still waiting for them.
So I was already aware that iplayer, live tv, was what I needed to avoid online and to be honest, I've missed it like a brain haemhorraige.
I was not keen on sport or soaps and the news I read online so Netflix and spotify and free you tube are all I need and I am more than happy with my decision.
They will send you a cheque.
I got cheque for £60, not sure how much you'll recieve though and is because you will have been charged in advance for the licence.
They will send you a letter asking you to update them every 12 months. You can do this online. I have great fun telling them what I have not missed such as endless ads and sport on every channel.
So long as you stick to the rules, it all works out a lot more cost effective to not pay the TV Licence but only by not watching TV.