This theory proposes that media producers encode messages in media products and audiences decode and make meaning from those messages based on their own experiences and perspectives, leading to different readings. There are three types of readings: preferred, where the audience agrees with the intended message; negotiated, where the audience somewhat agrees but adjusts the message; and oppositional, where the audience opposes the intended message. The theory sees audiences as active rather than passive in making their own interpretations rather than just accepting the producer's message. It is not heavily criticized as it does not assume audiences will simply accept information but can understand it in multiple ways.