This article is from the rec.arts.movies.tech FAQ, by Scott E. Norwood snorwood@nyx.nyx.net with numerous contributions by others.
6.1.1 Differences Between Reversal and Negative Films
The difference is quite simple: with negative film, the images on the
camera film are reversed such that light areas become dark, and dark
areas become light (just like a still photographer's negatives). The
camera negative cannot be properly projected, as a positive print
(duplicate film) (with the light areas light and dark areas dark) must
first be made, and then this print is used for projection. With
reversal film, the camera original can be properly projected.
6.1.2 Uses for Reversal and Negative Films
Home movies, old television news footage, and some military and NASA
films (as well as most of the NFL Films library, until quite recently)
were/are shot on reversal film for convenience and the cost savings of
not having to make a separate print for projection. Nearly everything
else is shot on negative film, as prints made from it are cheaper than
those from reversal; additionally, it has far greater exposure
latitude (tolerance for over/underexposure) than reversal film.
Finally, professional film-makers do not want to damage the camera
original in the editing process, and so the convenience and cost
advantages of reversal film are negated.
 
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