The artists being compensated part is moot if we want to get into it. They're not losing money trust me. Bottom line is this: I pay the subscription, ergo what spotify does with it and how they have it all hashed out between labels, and how the labels and singers have it hashed out between themselves, ultimately is of no consequence to me. I did my part and that's all I need to know on my end.
Regarding multiple streams on multiple devices.. let me clarify my position a bit. I use spotify in my professional line of work as well as personal and it would be nice to have that choice, where I can have music going in one room, and use spotify in another area without impacting anyone, or be able to play off my iPad while queuing and sampling other tracks on another device (laptop, cell phone, etc).
Spotify hasn't made any official announcement as to why users are limited to one stream (at least none that I've seen). It seems to have just been a decision made and that's it. Let's play devil's advocate ok...lets not assume one way or another that they are doing it to benefit artists/labels, themselves (saving on bandwidth), or as preventative measure against abuse of their services (which means that Spotify assumes we, the users, can't be trusted to be given that freedom, even though I'm paying for the service). Does the reason really matter ultimately? I think no. Regardless of the reason though, I find it quite sad that for whatever the reason a person who is willingly paying for their services can't have the freedom to enjoy the services to it's fullest extent. It's like buying high speed internet usage for your house, but you're only allowed to use it one one computer/device at a time. So if I have my laptop connected, all other devices can't connect. So I wouldn't be able to DVR things, use a smart tv if I wanted to, play online on my gaming console, etc as long as one device is connected at the same time. Sounds silly right?
It just seems very necessarily restrictive to me in a day and age where we're pretty much multitaskers all the time. To my knowledge, pandora (last I checked, I could be wrong) and other similar services doesn't restrict me in such a fashion.
I do grant that this isn't the worst transgression a piece of software or service has done in my eyes, but it's just frustrating.
While I'm on my soap box, the inaccuracies and mistakes in labels, artists/music associations (search for Sabrina and click on the artist, and you'll get albums in the list belonging to different artists by the same name), no consistent labeling for explicit content... AND radio keeps locking up my iPad are annoying enough to me, that's why this added "Derp" move in my opinion does nothing to make me feel the money I've been spending is well spent.