This is standard behaviour and is known as "direct streaming". It
happens if you are playing a stream which is "native" to the player such
as http/MP3 and http/WMA.  This will not happen when the streamis
transcoded by server such as a http/AAC stream.  This behaviour means
stream goes direct from station to player so no server involvement and
no double hops in local network.  

If you enable LMS proxy so the stream goes through the server (i.e.
small server load and double LAN network traffic) - try WebUI Settings/
Player/Audio/MP3 Streaming set to "proxied streaming" - AFAIK although
it says MP3 - it will also apply proxy to WMA streams.


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