Are they seeing advances as too big a risk in a market that is swamped, no matter how big you are?
It's not just the lack of advances, though. The rest of the contract is horrendous.
So, OK, let us assume, for the sake of argument, that publishers can't afford to take a risk by offering advances to new writers. (Because, for instance, the people up at the top of the corporation that owns the corporation that owns the publisher is demanding higher profits.) Even if this were the case, why all the other horrible clauses in that contract?
And here is the thing with an imprint like Hydra. Random House has an edge over the independent presses, and the self-published books, in a well-known name and a reputation for a certain level of quality in the books they publish (let's not argue about all the published books that we here might think are bad, because we are talking about their
reputation with the world at large). Surely they aren't going to compromise that reputation by releasing a flood of bad books. No, I think they are going to be more selective than that, perhaps as selective as they are with their other imprints, and only buy books they really think are good.
And if I am right about that, then writers will have about the same chance of being published by Hydra as they have of being published at another publisher who will offer them a much, much better contract. They might even, conceivably, do better at another division of Random House itself.