Scorseses essentially claims that the background, underlying morale, and attitude of a main character is much more important than any complex, mind-blowing plot-line. But then, he essentially contradicts himself with the quote regarding the death of the King and Queen to illustrate the difference between plot and story. A plot cannot develop without a character and his/her decisions, but it should be left open to interpretation from the audience. It should also be left open for the character to follow his/her own path and make his/her own decision. When brought to a conflict, a character must make a decision. This decision has the power to alter the "story" completely.
The plot consists of nothing without the character's unique, independent mind. Following the character is how the story is unveiled, his/her decisions is what makes the story into what it is. Throughout this journey, the character hits some sort of self-realization, and his initial voyage becomes irrelevant. Along the way, some sort of moral is hit, and the character's ending goal is changed. A lot of the time, this underlying soul-searching is evident the whole way through, but is highlighted in a dramatic turning-point. Story is not only the cosmetic visual and plot the character follows, but it is also the hidden meaning.
One example that comes to mind (only because of my die-hard love for animated animals) is Disney's The Lion King based off Shakespeare's Hamlet (however not too big a fan of Shakespeares' nonsense). Simba's childish mistakes put his family in danger and leads to the fatality of his beloved father. Unable to face this and comes to terms with his death, he runs from his problems and escapes responsibility as next-in-line to the throne. Without Simba's guidance, the pride-lands fall into drought and a period of starvation. The plot consists of Simba's adventure, but the story includes his emotions and inner-turmoil. Though not enunciated directly, Simba's feelings are implied and left to the viewer to distinguish. Rising above this Cowardly-Lion phase, Simba outgrows his shame and returns. He must admit to his wrongdoing for the good of Africa. In conclusion, a fable is left to register--in life one may not run from his/her fears. One must stick it out and self-evaluate, be susceptible to indignity, and overcome guilt/ fear. This is usually the more fulfilling "story" over the actual plot. S
Name any award winning film, and it's storyline has much more than meets the eye. Audiences and individuals are constantly searching for the sentimental factor--it's simply human nature.