What is Stuart Hall's reception theory in regards to audience?

Stuart hall states that as the audience of a given piece of media text, there are 3 different ways to interpret said text. Producers generally encode a specific message or meaning within their product and then the audience decodes it in 1 of 3 ways: Preferred reading, oppositional reading or negotiated reading.
Preferred reading (also known as dominant): This is when the producer picks and chooses how they want their audience to view the media text.
Oppositional reading: This is when the audience create their own meaning for the text and ignore the preferred reading that the producer is trying to portray.
Negotiated reading: This is like the in-between of preferred and oppositional reading - the audience allows the preferred reading and accepts the producers views but at the same time, they would also have views of their own.