Its a interesting idea, for photographers who might be the type to submit a photo of a news worthy event to a media outlet free, now they can earn a few dollars a century.
Of course, if your photo is of a huge breaking news event, and you are the only one, or have the best photos, then getting $10 or $1 for it isn't very much. Photos posted have also been grabbed and nothing paid. If you have a valuable photo, posting it on Flickr is not the way to go. Posting a photo of a car accident might seem mundane, but, if it turns out that a celebrity was in that car, it might be worth a lot.
They solicit photos from Flickr because many of the users post photos that might be usable by news media. If you carry a smart phone around, and upload photos to Flickr on the spot, as many do, they might be instantly sold and you would get a few dollars.
For a Media outlet, having hundreds of thousands of freelance photographers who work for almost nothing, is yet another step in the demise of professional photographers. That doesn't bother me, technology moves on, and we all must adapt.
I didn't notice if they sell video clips, but that's a obvious extension.