AoL just announced that the AoL Radio App on www.aolradio.com is now able to deliver radio streams in CD quality, with free access to over 400 online radio stations. Stations include 250+ AoL stations and 150 local CBS Radio stations. The app detects a user’s location, automatically displaying the nearest CBS Radio station.  So far, six million IPhone or IPod users have downloaded the app.

“In developing the Radio App, we listened to our consumer’s feedback and created an application that would engage them in a way they couldn’t find anywhere else,” said Lisa Namerow, GM, AOL Radio, SHOUTcast and Winamp, in the announcement. “Our partnership with CBS Radio has allowed AOL Radio to continue to grow, and having more than 6 million downloads and counting is further proof that AOL Radio continues to innovate in the Internet radio space. We are thrilled it’s being so well received by consumers and is a testament that the hard work of the AOL Radio and Mobile teams is really paying off.”

AoL Radio was awarded with a 2008 Apple Design Award for the Best Entertainment Application, being named one of the iTunes Best of 2008 Top Free Music Apps, and being listed as one of Gizmodo’s 50 Essential iPhone Apps.

The AoL Radio App is available for free from the App Store on iPhone and iPod touch or at www.itunes.com/appstore/.

AoL Radio is part of the AOL Radio Network, which also includes SHOUTcast and their product extensions within Winamp. Globally, the AoL Radio Network is No. 1 in the Entertainment/Radio category according to comScore Media Metrix Worldwide October 2009 data.

Here’s more on what the new AoL is up to, as recently reported bYAIM Group.