No, it wasn't indentured servitude. Actors signed contracts to work for studios, who in turn spent a great deal of money to make "stars" out of actors. These actors were guaranteed steady work at very good pay, plenty of time off, and the bigger stars were treated like royalty and jealously guarded and protected.
Of course, the bigger they got the more they chaffed under the studio system. Loaning out actors many times appeased them so that they could work on something they really wanted to do. It was good for the studios too because they sometimes owned a story that everyone knew "Needed a Cary Grant",but they didn't have one.
I would agree things have certainly changed...not for the better when it comes to quality out of Hollywood.
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