Charter Communications executives are said to be exploring an online video service as part of its combination with Time Warner Cable.

The $78 billion takeover would make Charter the No. 2 US Internet and cable company after Comcast.

Tom Rutledge, who would run the combined Charter-Time Warner Cable, has now opened the door to establishing the cable industry’s first competitor to services like Netflix Inc and Hulu. “We’re certainly exploring that thought,” Charter CEO Tom Rutledge said in an interview on Tuesday. “But whether you can put an over-the-top product together today with the existing services that are in cable and make that work is unclear to us. It’s certainly something of interest.”

The development of Charter’s video technology in recent years, which includes a shift to cloud-based systems, also make it a likely move, analysts say.

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