Abstract Using a model, we explain why propaganda in autocracies can be blatantly false and unconvincing. We model two news outlets that report on a hidden state of the world, motivated by the ex-post beliefs of the audience about the state of the world. News outlets face a tradeoff when making egregiously false statements. On the one hand, such statements are easily verifiable as false. On the other hand, a demonstrably false report reduces the credibility of the report made by the competing outlet. This is especially true for audiences in autocracies that are characterized by high media cynicism and are prone to making sweeping generalizations about the self-serving nature of all media.