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takyon writes:

IBM and FUJIFILM have demonstrated the equivalent of an LTO magnetic tape cartridge with a capacity of 220 terabytes.

According to IBM:

To achieve 123 billion bits per square inch, IBM researchers developed several new technologies, including:

• A set of advanced servo control technologies that include a high bandwidth head actuator, a servo pattern and servo channel and a set of tape speed optimized H-infinity track follow controllers that together enable head positioning with an accuracy better than 6 nanometers. This enables a track density of 181,300 tracks per inch, a more than 39 fold increase over LTO6.
• An enhanced write field head technology that enables the use of much finer barium ferrite (BaFe) particles.
• Innovative signal-processing algorithms for the data channel, based on noise-predictive detection principles, enable reliable operation with an ultra narrow 90nm wide giant magnetoresistive (GMR) reader.

Rumors of tape's death are greatly exaggerated; LTO-6 tape pricing has fallen to $0.02 per GB, and a record 6.6 exabytes of tape were shipped in Q3 2014. The LTO roadmap calls for 48 terabyte LTO-10 tapes at some point in the future. Each new generation of LTO roughly doubles capacity, so a 200 TB LTO-12 tape may be slated for 2030.

In April 2014, Sony announced the development of 148 Gb/in² tape that could enable a 185 TB tape cartridge. A month later, IBM and FUJIFILM announced that they had achieved the equivalent of an 85.9 Gb/in², 154 TB tape. The new tape is based on the same NANOCUBIC™ technology.

Edit: Changed to reflect a tape cost of $8/TB compressed, $20/TB uncompressed.