Alright, It's Finally My Turn to Mess with You
In normal circumstances, talent agencies prefer longer-term contracts because they invest a significant amount of time and money into developing an artist's skills, increasing their fame, and enhancing their commercial value. These are long-term investments, and if the contract duration is too short, there's a risk of the artist starting to gain some recognition just as the contract expires, leading to the awkward situation of them being poached by other companies at a higher price.
Talent agencies are not charitable organizations; they aim to bind artists as tightly as possible to enjoy the profits they bring, reduce risks, and cover their costs. Longer contract terms also mean more control for the talent agency over the artist.