They're giving away a measly $10,000 each, for a total of $40,000 - IF ALL FOUR contestants make it full-term. The vague rules they have posted in the application say that you must agree to sign other "agreements", which (conveniently) are not available right now. Yeah right, like I'm gonna sign something *now* that obligates me to sign something later, whether I agree to the subsequent agreements or not.
This leads me to believe that like others have suggested, they'll set forth such stringent and restrictive rules that almost ensure the contestants will NOT make it to the $10,000 mark, so they'll end up with the $2,500 given to you up front. Several of us are quite capable of going *completely* off the grid, but updating Twitter/Facebook/Myspace is not my idea of completely disconnecting.
This means that their investment here (not counting the marketing costs that would normally be associated with an upcoming film) are somewhere in the neighborhood of $10,000 to $20,000 if someone does make it.
At the end of the day, it's to generate hype for the movie using a different approach. Ultimately, isn't everything about generating revenue?