Studios never fail to show how utterly dumb and incompetent they are.
They seriously cannot understand that maybe paying a decent amount of money (but still insignificant them) for the rights might actually get them more and possibly better ideas.
I'm quite sure the executives spend more money on a business dinner than most entrants would expect to get paid for a 2 minute clip.
But maybe they're being lazy? I mean, if you promise a decent prize, you'd have to watch a lot of clips! This way you only get the true fanboys (of a bad, generic movie franchise)
Normally I find these guys a chore, but agree with the time range in the description highlighting the fact that WB is crowd sourcing ideas for shitty horror movies on the cheap.