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I wouldn't say it's necessary, but for about $20 a month (perhaps less starting this month), I'm getting digital / HD cable with HBO, HD sports and DVR... and super fast internet access. So... it's a deal too good to pass up. I went without cable for a long time, when my budget was tighter and I was trying to cut back. I decided a year ago -- especially with this deal offered through my apartment complex -- that I would upgrade my entertainment.
Also, you must be a bachelor, or else some of those expenses would be a lot higher! haha.