How is it possible that i can play music marked with the cloud icon in the music app when i'm not subscribing to itunes match?

When I'm on the same WiFi network as the computer I sync my iPhone to, I can se a lot of songs in my music app marked with the little cloud icon. And when I leave the network, I can see only the songs with this icon that I have played and therefore probably cached.
Where can I read more about this function and get to know it better?
It seems to work like iTunes Match, only limited to 'local' use. I'm not an iTunes Match subscriber, but I have the 'Show all music' setting enabled.
It's a cool function, both it's a bit annoying that i uses up my available storagecapacity. I keep getting warnings that my storage is almost full.
Does the cached music automatically dissapear since i haven't added it while syncing?

This feature is called...
iTunes in the Cloud
It uses no storage on your phone or any in your iCloud storage allocation.

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