A website that is promoting music for free to listen without a permission to play the audio and without downloading option is considered as copyright infringement ? If so , youtube is illegal ?
I'm not an attorney, but generally speaking, any website or business that benefits from commercial music is subject to royalties. Royalties are due to not only the artist, but the composer/song writer, and the distribution company, and anyone else who may hold rights on the work. This is true even if you just have music playing in the background or have sheet music available. If you are distributing music to a listening audience then you most definitely need to pay copyright royalties in order to be legally compliant. As for youtube, I can not say. I believe some distribution companies send them official videos, which is why there is Vevo. They will also quickly remove any video in which a copyright owner points out the infringement. My best guess is that this is good enough to keep people happy, but they may very well be paying royalties or have other behind-the-scenes arrangements that we aren't aware of.
So do you think, if I run such website i'm going to face problems ? or just remove the infringing files upon request would be ok ? and also, do you think google adsense would be allowed on such websites ? (they have to consider it such as youtube)