For me it also worked to just copy over my IP connection settings from "DHCP" settings to the "Static" tab in WiFi settings. So there is no need for a proxy server!
The problem seems to be, that creating new connections fails within the spotify app, which is most likely more easy with static IP settings. As long as the app has stable connections, everything is fine. My assumption is that this is also the reason, why unfortunately the search functionality does not work. Most probably the app tries to build a new connection for it?
I started getting this issue too. Powering off and on again fixed it - that is the full restart (holding down power and home button together until screen goes black).
Therefore no issue for me anymore but still just wanted to comment on the points about IPAD1 no longer being supported. It is fair enough that new features are no longer added but it would not be acceptable for core services to stop unless there was some kind of security vulnerability that was impossible to address. This stands from an environmental point of view (please don't keep recommending buying new devices however cheap and encouraging a throw-away society) but may also have legal / financial repercussions shortly with European Law moving towards outlawing designed obsolescence and deliberate restriction of device lifespan.
perfect response - this is the core issue IMO with tech today
hardware requires billion dollar factories and trillion dollar economies to be produced
when you throw away perfectly working hardware you're not discarding the visible dollar cost of the hardware - you're devaluing all the natural resources required to get humans on earth to the point that the hardware could be manufactured at all
while functionality can be retained, it should be - and the europeans will benefit tremendously if they get right to repair laws together, so power to them
there's only a few times you discard something that works, what comes to mind immediately are
-very high energy consumption (not applicable to ipad 1)
-excessive pollution (not applicable to ipad 1)
-has a much-higher-than-replacement value in the form of recyclable materals (likely not applicable to ipad 1)
-is toxic to humans (not applicable to ipad 1)
-software security issues (directly applicable - however - as a music player, is of near-zero concern and can be mitigated through consumer education)
I'd suggest the web profile have a checkbox 'Account will be used on unsupported hardware' and when this box is checked a popup appears saying 'DO NOT USE SHARED PASSWORDS AS THIS ACCOUNT WILL BECOME INSECURE'. This allows a person to make a judgement - "Is the security of my spotify account of more importance than trying to reduce waste/unnecessary recycling?"
There is one additional big reason to drop support for old hardware - when the labour to keep the software stack working creates more pollution and wasted resources than would be saved by having a team do the 'bare minimum' to try retain a measure of functionality for old hardware that otherwise would be discarded.