Can't add to playlists - "iCloud playlists can only contain songs from your iCloud music library" If you continue, playlist will be removed from iCloud and only be available on this computer

I have just tried to add a track to an existing playlist - and get the following message -  "iCloud playlists canonly contain songs from your iCloud music library" If you continue, playlist will be removed from iCloud andonly be available on this computer".  I have tried dragging and dropping, right clicking and adding and pressing the little arrow to add to playlist and all tell me that I cannot do this.  What's that all about?  I am not signed up to iTunes match and I wasn't aware that iCloud held music libraries??  Someone please help.  Thanks  SM

I am really surprised that no one has been able to help me with this...    Anyhow, I have still got the propblem - although I am definitely NOT using Match.  I have been adding to existing play,ist by removing it from icloud (dunno how - but it's an option offered when trying to add to playlist).. Now when I sync iphone that's fine - playlists are good - but when syncing ipad 3 - Nope it's not having it.  What to do?

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