Netflix CEO Reed Hastings "has been successful in throwing hail Mary passes and then growing into them. And I think he is going to continue doing that. He's got a great service. He's disintermediating the studio industry by going directly to the talent," Malone said in an exclusive interview with CNBC's David Faber Thursday at the Liberty Media annual investor meeting.
"The only outfit right now that has a chance of overtaking them would be Amazon."
The investor noted the cable industry missed its opportunity to compete with Netflix in the past and said "it's way too late" now. He added that in today's media world Netflix has the lead position due to its size and subscriber base.
The internet "makes scale even more important in the media business, where scale always was important. It's all about scale," he said. Netflix was "the first wave. And I think Jeff [Bezos] is gonna be the most disruptive. As [his] Death Star moves into striking range of every industry on the planet."