In addition to having a smaller recording density, barium ferrite has a higher signal-to-noise ratio and resolution. The barium acts as a protective coating on the ferrite, making it more stable than iron oxide, Ozawa said.

Tapes using the new technology will cost about the same as tapes today, meaning the cost per gigabyte will go down, Ozawa said.

The new technology, which uses the same form factor as LTO tape cartridges today, works by using improved heads and servos that can read the smaller particles, Master said.

"IBM has, back to the 1950s, been the champion of tape and has really many of the very significant tape technologies," said Robert Abraham, an analyst at Freeman Reports, an Ojai, Calif.-based firm that follows the data storage industry. "This is one more step -- but it's a big step."

Although the full technology might not be available for five years, users will likely see benefits from the developments within a year or two, Abraham said.