It's a collaboration in terms of the story actually being portrayed properly to the audience.
I think what Tres is trying to say, is that the audience is not removed entirely from the creative process. Their input is in the sense of them understanding, and taking the pieces of what is the story, and then assembling them into the correct parts of what the author is trying to convey.
It's a two way street. The creator creates the work, and the audience takes the work, digests it, and reachs the authorial intent behind said creation. If it were solely just a process of the author, then that would mean that the author is literally just putting the shit inside your head. There would be no need for cognition, interpretation, or actually viewing the work at all. It'd just be understood in an instant. The viewer has to actually sit through the work, internalize it, and actually reach the conclusion of what the author was trying to tell.
I don't think New Criticism has any place in discussing what's obvious and canon, but it has its place in dissecting and analyzing other works scholarly. So yeah.