Cameras work by shining light on something that changes color forever when the light hits it. While the lens may be a circle, the thing the light hits is a rectangle.
When cameras first became popular, the thing the light hit was a roll of film. It was essentially one long, thin sheet, rolled up onto a spool. The camera would cover all but a small section of the roll of film, and allow the light to hit that.
Because of the way it was shaped, the piece left uncovered was a rectangle, because you could fit more rectangles on a roll of film, which fit more pictures, so it cost less per roll of film.
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