CNN launched its mobile app for iPhone today. In a widely watched move, the network decided to charge $1.99 and break the free to read mobile content model used by competitors such as NY Times and USA Today. CNN’s angle in how it’ll overcome the barrier is quality of content. CNN says the app provides the same breaking news feeds as the network and gives access to local coverage through Topix. The app’s real ace in the hole could be how it takes advantage of what the iPhone can do to facilitate CNN’s serendipitously named iReport. CNN iReport has become a popular TV and web feature, where publicly submitted photos, videos and commentary of live news events are broadcast by the network.

CNN’s move follows a similar decision by Wall Street Journal last week, which decided to start charging $1-2 per week for its content on the go. The major outlets who aren t currently charging are watching. They want to see if the free news content model is indeed as entrenched in consumers minds for mobile as it has become on the web. On the free side of the coin there s a lesson to learn from AP, which launched a Blackberry app at $2.99 to tepid reception. Downloads of the AP app surged once it was free. Read more from AP.