Spotify music streaming service is now available in Israel – with a free plan, and a premium plan at 19.90 NIS per month.
As of 12 March 2018, Spotify is available in Israel. They have both free and premium plans. The free plan gives the user less control, but it still may be enough for most users.
I downloaded Spotify on my Android phone, signed up for the free plan, marked a dozen artists I like, and have been enjoying non-stop music since!