I'm having the exact same issue as of today pal. Also not great because I'm on free, so to get it to continue playing I have to press skip, but can only do that so many times and then I'm stuck with no music
Edit: Mine is a normal Z5, not a compact (although I doubt that makes a difference)
It started with the update that came yesterday. Before that there was no issue, so something on the spotify side has changed. But I have also had issues with the controls sometimes not showing up in the lock screen.
Same Problem for me. Spotify stops after every track, does not matter if its a generated playlist, album or on shuffle etc. Spotify Settings still has "seamless playback" enabled. Did anyone solve that yet?
I can't gurantee if this will work but if you have your Spotify app linked to your sony music account, try unlinking it by deleting the "Sony Entertainment Network" account under Android settings, restart the app and see if this fixes it.
I have just emailed technical support but after trying all the various methods they told me to perform factory reset my phone (!), which of course I am not going to do since I am pretty sure it won't fix it. As the app was working fine until the update last night I am guessing it must be something that conflicts with either a setting or configuration in the Z5. I think it woud be a good idea for everyone to get in touch so that they know about it.