Traditional news providers, and especially television outlets, are facing multiple headwinds, from declining ad revenue and the rise of misinformation to audience erosion. But a more fundamental problem is that news is failing to meet the needs of today’s younger consumers. It’s well known, for example, that younger generations heavily use social media for news and are much less likely to access live TV news through a traditional or digital provider.

But while that’s true, it leaves out some of the critical nuances of how younger people interact with the news. Our new survey, that asked some 6,000 US adults about their news consumption, uncovered four common misconceptions that, if left unaddressed, might lead news-industry leaders astray when developing their forward-looking strategies.

Misconception 1: Young adults (Gen Z and millennials) trust social media for news

Some 45% of Gen Z and youngest millennials (roughly those born after 1995) say social media is one of their top sources of news (Exhibit 1). But these younger consumers are aware of the medium’s limitations and try to be proactive in combating misinformation. According to a separate Gen Z survey conducted by the Oliver Wyman Forum only 37% say they generally or fully trust the accuracy of social media news — making this channel one of their least trusted news sources.

So why do they continue consuming news from social media if they don’t trust it? Some 57% of younger Americans say it’s because they fact-check their news (compared with less than a third of older consumers who do so) — and they see themselves as “truth savvy.” This fact-checking appears to leave much to be desired, however: 77% of Gen Z who say they fact-check also believe at least one COVID-19-related “fact” that is not actually true.

Traditional news outlets aren’t  a top destination for young adults, mainly because distribution formats like television and print impose additional obstacles for younger consumers used to opening up social media apps on their mobile phones. Given their confidence in their ability to spot “fake news,” convenience wins out.

Misconception 2: Young adults distrust traditional mainstream news and personalities

Personal political leanings may sow distrust toward a news source with opposing views, but younger generations in general tend to trust traditional news sources and personalities from mainstream news at levels close to older generations (Exhibit 2) — and both groups show less trust in nonconventional sources like comedians and social media personalities. These data suggest that incumbent news brands are maintaining trust equity with the larger share of consumers, which gives them a credible entry point for creating news offerings that appeal specifically to younger generations.

Misconception 3: Young adults do not care as much about world events and politics as older generations

Regardless of generation, world, national, and local news remain key topics of interest, indicating that traditional news brands should retain this stable core even as they seek to diversify channels to reach younger groups (Exhibit 3).

Interest in lifestyle and pop culture is higher for younger generations — which historically has always been the case — while interest in business and technology is remarkably stable across generations. These topic areas thus serve as opportunities to supplement the core offering and attract younger consumers, where appropriate.

Misconception 4: Young adults do not want to pay for news

Contrary to popular belief, younger generations actually are as willing as older generations to pay for a subscription-based news product “as is,” —  and more willing if it includes additional digital services (Exhibit 4). One reason for this may be that young adults are already used to paying for subscription services, such as video and music streaming and apps.

To capitalize on this willingness to pay, news providers must be laser-focused on developing products that provide clear value for money and fit the consumption habits and preferences of these younger groups.

Paths forward for news operators — meeting the needs of Gen Z and millennials

As our survey findings indicate, all is not lost for traditional news brands. They have the trust of younger news consumers, now they must do two things to ensure their future: build out “sticky” formats and channels around news that meet Gen Z needs and consumption preferences, and develop viable business models that contribute bottom-line value.

Not to say this is easy; even newer media brands such as BuzzFeed and Vice Media have struggled to generate sufficient revenue to cover the cost of news production — exacerbated by an environment in which user-generated content costs virtually nothing. More successful examples include Politico converting its most loyal audience to a subscription model for a premium product; NBC bundling digital ad impressions with premium content and selling directly to consumers via streaming (resulting in higher ad revenue); and Toutiao (from the parent of TikTok), which uses news aggregation to reduce the cost of content.  

We are clearly at a crossroads moment for the news industry. Akin to what Spotify and other streaming music subscriptions have done to rescue the music industry, news organizations that can recognize these unmet needs among millennial and Gen Z generations, create resonant, sticky products, and build out monetizable channels that fits these generations’ consumption habits will emerge as the winners.