How is technology changing the way we consume entertainment? If Sirius CEO Mel Karmazin is right, we'll soon be tweeting on the road.

"The next screen is the navigation screen in your car," he said. "You're going to be able to tweet while in your car. It will be voice activated. If you want something at home…you want it everywhere."

In the gaming business, technology is increasingly allowing companies to tell emotionally compelling stories. Until recently, gaming animation "looked like bad 1950s Japanese anime that was dubbed," said Robert Kotick of Activision Blizzard. Now the mouth movement, facial animation and eye contact in games are more like that seen in a Pixar movie.

Technology has the ability to shake up the business models of established entertainment companies, but "it's only disruptive to those who refuse to change," said Lionsgate's Jon Feltheimer. The opportunities for media companies to market their franchises using social media are enormous, he added. In Australia, 50 percent of the people who saw "The Hunger Games" got the majority of their information about the film from the Internet, while only 10 to 15 percent of the marketing budget was spent online, he said.

As studios change their marketing formulas to reflect new realities, TV broadcasters may lose a piece of the pie, he predicted. Karmazin agreed that word of mouth is the best advertising, and social media harnesses that model. However News Corp.'s Chase Carey believes there's still "nothing like the power of brand advertising on TV."

Advertising on the web and other digital platforms still presents problems, though, because its target audience is not like radio listeners in a car. "They're not captive," Carey said. "They'll move."

However, Feltheimer's company recently launched a YouTube channel for its fitness properties, including Jane Fonda, and an advertiser bought out the inventory for an entire year. "We think the future of our fitness business could easily be the Net," he said.

Feltheimer also took a shot at Karmazin, asking him why satellite radio is running ads. Blame the bladder, Karmazin said. While music channels don't have ads, Howard Stern has commercials because he needs a break to go to the bathroom. He used to have 20 minutes of ads on broadcast radio, but he now gets six.

All the panelists agreed that in a crowded media market, established franchises are becoming the only sure bets. Kotick said his company's most successful hits are franchises with 10-15 years of history. Feltheimer's purchase of rights to two hit "young adult juggernauts," Twilight and The Hunger Games, allows for cross-promotional opportunities. "Having a franchise, repeating a franchise is a lot easier than starting something from scratch," he said.

With changes in technology, the big guys are going to be OK, Carey predicted, but "the middle is going to get killed."

Karmazin also took a shot at Facebook's recent purchase of Instagram for $1 billion, saying more established media companies "think the price is crazy."