What I am proposing is that they do get compensated tho.
Since Amazon owns Twitch, they should integrate Amazon Music as the only music service that their partners/streamers can use while they Live. The labels/artists love the exposure that they get from anywhere, let's be honest, they just strike down the content that's up because the stream for the song that is being played only counts for 1 play... even tho the streamer could have thousands of people watching.
If they figured in the total number of viewers/listeners in these streams and compensated the artist that way, it increases their stream totals and the platform's partners is another avenue for artists to get paid.
I get what you’re saying 100%. They’re absolutely set up to pay royalties for listens. What they aren’t set up for is allowing a 3rd party to use licensed music for that 3rd parties content being hosted on their platform. For example, if a club plays licensed music, they are supposed to be paying out royalties to the artists. (I get some don’t but I’m talking about in the legal sense of the way things are SUPPOSED to go). Another more pertinent example is how Coca Cola, or some other big brand, wants to use a Christina Aguilera song or whatever for their ad, they would have to pay royalties.
in the case of a streamer, that streamer is using the music for their content without a license for to use that song in that way. It’s not Spotify’s responsibility to secure a license for a streamer to use an artists song. You get what I’m saying? Spotify is currently set up to pay royalties for hosting the music themselves, not for someone else to host the music on their 3rd party content.
To your point, the connection is close though and I’m sure they’re equipped to figure it all out. The licensing issue is just not clear cut because you have to get into who actual holds the license and who actually pays out the royalties.