For another example of signaling from advertising, consider movies. A movie distributor may produce several movies each year but advertise just a few of them. Although there are few repeat consumers for a particular movie, there is word-of-mouth advertising, also known as buzz: People who enjoy a movie talk about it and persuade their friends and family members to see it. If a distributor believes a movie will be appealing and thus generate a lot of buzz, an advertisement that gets the buzz started could pay for itself. In contrast, a distributor won’t expect much buzz from a less-appealing movie, so advertising won t be sensible. In general, an expensive advertisement sends a signal that the movie will generate enough word-of- mouth advertising to cover the cost of the advertisement.