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I assume the reference is to 35mm magnetic tape. Celluloid, used for movies, was optically encoded. As you say, it definitely did not allow for audiophile sound.I would have to imagine that RCA, Mercury, and Command were moving to a wider magnetic tape not celluloid.
Listening to Petula Clark- Downtown, the song brings a tear to my eye and what a stellar recording. They knew how to record back in the '60's that IMO was lost somewhere. Downside though is damn near everything was in mono.