CURATED READS FOR GEN Z—AND THEIR Z-CURIOUS COLLEAGUES

first up

Welcome back! This week, we’re talking about how Gen Z consumes sports, the cost of unproductive labor, and moving past the AI honeymoon stage.

This summer, a new class of Gen Z Olympians will head to Paris to compete for gold. But will their peers watch them vie for a place on the podium?

As with millennials before them, there’s a persistent myth that Gen Z doesn’t care about sports. While that may not be true, how they like to consume sports media certainly differs from older generations.

One in five Gen Z sports fans don’t watch live sports, according to McKinsey research. What they do spend time and money on—video games and e-sports, fantasy leagues, and digital collectibles, but notably not live-sports subscriptions—is correlated with their household income. That means that as they earn more over their lifetimes, they may spend more on sports-related purchases.

As the Olympic Games inch closer, McKinsey partner Ben Vonwiller, who helped spearhead the research, talks to Mind the Gap about Gen Z’s interest in sports and its consumption habits. (This interview has been edited for length and clarity.)

Mind the Gap: So let’s get this straight. Gen Zers care about sports, but they don’t care about watching live sports?

Vonwiller: In our research, when it comes to digital behaviors—consuming media online instead of through traditional channels like cable TV—millennials were the inflection point between generations. Gen Z and millennials behave similarly in their digital-media-consumption behaviors, which makes sense since they both grew up with smartphones. Social media, for instance, is a big channel for Gen Z, since they can catch clips and discussions of games.

MTG: Are there ways Gen Zers differ from millennials? 

Vonwiller: Beyond their digital behaviors, we see Gen Z has different attitudes toward sports. For example, they care about having their identity reflected through sports. They want to see diverse athletes, they care more about women’s sports, and they don’t identify with teams the way older demographics do. Instead, they follow the athletes. That’s a very different way to think about fandom.

MTG: Do all the sports documentaries on streaming services have anything to do with that? Or should we be thanking Taylor Swift and Travis Kelce?

Vonwiller: Those narrative shows are now a legitimate way to get fans—or potential fans—excited about a sport. They work as a source of fandom because viewers engage with a human-interest storyline. When people are subliminally engaged in the sport, it becomes less confusing and more accessible. In some cases, you get to see the athletes’ backstories, understand the interpersonal dynamics of teams, or get a glimpse of the glamour.

MTG: Does the same thing happen when fictionalized sports movies are released? When the Hunger Games movie came out, more people—and a disproportionate number of women—took up archery.

Vonwiller: The documentaries have the real human-interest component, whereas the fictional ones don’t as much. But it’s true that when culture and sports come together, sports or even teams can seem like lifestyle brands in their own right.

MTG: We know that Gen Zers consume sports through gaming, digital media, and adjacent entertainment, such as documentaries. They’re also interested in sports tourism, meaning they’ll travel to see a sporting event. Does this mean that reaching Gen Z is a slam dunk for sports broadcasters, leagues, and media companies?

Vonwiller: Companies shouldn’t underestimate how different Gen Z’s consumption habits are—and how powerful their spending power will be over time. It’s easy to think that a media company might not have to worry about Gen Z’s preferences now, since they also still have to reach older audiences. But there’s a real risk in not evolving to keep up with Gen Z. 

VISUALIZE IT

One hour of “unproductive labor” per week per employee costs companies $15,000 a year.

WAIT, DON’T SCROLL

Paying it forward. While public policy can influence how affordable goods and services are, there are also opportunities for private businesses to ease cost burdens for more people.

Hard truths. The gen AI honeymoon stage is over.

Momentum memo. Gen Z is a “group to watch” in this consumer sector.

NOT US; STILL GREAT

‘Secondhand nostalgia.’ How many cassette tapes of Taylor Swift’s latest album sold? Not zero! [Bloomberg]

Acronym soup. DINKs, HENRYs, HIFIs, oh my … [Business Insider]

CROSSWORD

—Edited by Alexandra Mondalek, editor, New York