They list 5 playlists per tablet / phone... you can add music then name it - it's effectively creating a playlist, but it's already 'created' if that makes sense?
If you're playing content from your phone then those playlists show up too (when you've selected your phone/table as a source.
This industry is not getting cheaper and cheaper, we're simply convincing ourselves that we have to push the cheapest option to customers. #makesonosgreatagain