CNN to drop Associated Press news

*CNN ends agreement with AP

*CNN launches distribution service

*To start using Reuters to supplement breaking news

NEW YORK, June 21 (Reuters) - CNN will no longer use pictures, articles or video from the Associated Press, the cable news company said on Monday, moving to use more of its own resources to cover breaking news and feature stories.

CNN President Jim Walton, in a memo to staff announcing the decision, said that starting immediately the cable network would be the “primary source of all content for all of our platforms and services.”

In addition, Walton said CNN had entered into a new deal with Reuters to supplement its breaking news coverage. A Thomson Reuters TRI.TOTRI.N spokeswoman confirmed the arrangement, which re-establishes some ties after CNN and Reuters ended a long-term partnership in 2007.

CNN’s decision to drop AP came after the two organizations failed to reach a new licensing agreement. It marks the latest blow to the AP co-operative, which has angered some of its members, including newspapers, over its fees and coverage.

“It is unfortunate that CNN’s viewers will no longer have access to the breaking news and worldwide reporting resources of The Associated Press,” AP spokesman Paul Colford said in an email statement.

CNN, owned by Time Warner TWX.N, announced in 2008 that it planned to distribute its own content, its first step in pulling back from its reliance on wire services.

Walton said in Monday’s memo that CNN is launching an aggregation and distribution service called CNN Share for its editorial content. (Reporting by Jennifer Saba, editing by Paul Thomasch and Matthew Lewis)