Cable TV news network CNN is dropping The Associated Press as it expands its own newsgathering efforts, according to a CNN memo Monday.
"We will no longer use AP materials or services," Jim Walton, the president of CNN Worldwide, said in a memo to CNN staff that Agence France-Presse obtained.
The move is "an important next step in the content-ownership process we began in 2007 to more fully leverage CNN's global newsgathering investments,” Walton wrote.
"Starting today, CNN newsgathering will be the primary source of all content for all of our platforms and services," he said. "The content we offer will be distinctive, compelling and, I am proud to say, our own."
Paul Colford, an AP spokesman, said the news agency, a cooperative owned by 1,500 daily U.S. newspapers, had been "unable to reach agreement with CNN on its license to use our content."
"It is unfortunate that CNN's viewers will no longer have access to the breaking news and worldwide reporting resources of the Associated Press," Colford said.
Nigel Pritchard, a spokesman for the Time Warner-owned Cable News Network, said the contract with the AP runs out at the end of June.
Walton’s memo to CNN staff said, "Less reliance on outside sources will mean more to invest in our organization" and "make us more creative, resourceful and collaborative journalists and news professionals."
Walton said CNN is launching a new alert system for breaking news and an internal platform called "CNN Share" to "aggregate editorial content and facilitate easy distribution and sharing."
The AP is one of the world's four leading news agencies along with AFP, Reuters, and Bloomberg.
The AP posted a 65-percent drop in net profit last year as the struggles of the newspaper industry also hurt the agency’s bottom line.
Declining print advertising revenue, falling circulation, and the migration of readers to free news on the Web have led to pressure on the AP from a number of US newspapers to cut its rates.
© 2014 Newsmax. All rights reserved.