My S7 can still do it. The reason newer phones can't is because they lack an aux jack: the wire is used as an antenna. Another great reason to keep the headphone jack.
I'm not sure exactly what it is, though I know all the S7s do. I suppose it may be carrier-locked? I bought mine unlocked, not via a carrier. It's a handy feature, though. Free music and entertainment with zero data spent. I've got to wonder why people moved away from it. No signal issues either.