Good summary here:
https://techcrunch.com/2014/04/17/spotify-removes-peer-to-pe...
"This is when the company took advantage of cached songs. Before today’s change, if you streamed a popular song for the first time, the client would download the song from other users, using peer-to-peer. All of this happened in the background, but it greatly contributed to making the overall user experience snappier."
"Yet, now that the company has many servers, using peer-to-peer in addition to direct downloads actually adds a bit of overhead. Moreover, the company has to maintain the peer-to-peer code base, and update it with each new version."