Hilton has been saying all off season that he seeks a contract only suitable for a number one wide receiver. The market was set when Dez Bryant got his $70 million contract and Demaryius Thomas got the same exact amount, this led Hilton to believe he should earn the same.
The difference with TY Hilton and the other two is that Bryant and Thomas are arguably the best wide receivers in the league. TY Hilton is good, even great, but he has to realize that he does not have the large frame and physical presence to create space like Bryant or Thomas.
Instead he is a burner, a speedy wide out capable of taking the top off of defenses which is genuinely not a bad thing to be. Hilton is 5'9 and 178 pounds, and only 25 years old, so it is completely possible he has not even hit his prime yet. Hilton is also a big piece of the puzzle for resigning Andrew Luck; Luck may not be so willing to deal with the Colts if he sees them shipping off his weapons.
From the opposite side of the coin the Colts could be waiting to hammer out a deal with Luck before they figure anything out with Hilton. It looks like a deal between Hilton and the Colts might be done by Labor Day but he will most likely have to take less money in the short term to stay with the Colts.