I'd be specifically talking about online local news.
With that being said, could a Youtube channel producing short-documentaries similar to Vice's highly successful format engage the 18-29 demographic on local issues? As this news would be more in-depth and as you said this appeals to a younger demographic.
What about online websites for local news too? Do you think they can be improved? Currently the local websites near my city (Manchester, UK) only publish restaurant deals, reviews and unimaginative news.