I can't find any record of iTunes having an "archive" button and I have never seen it on mine. My bet would be that he is using some program or app to rip, which allows him to upload to this "archive". It would not make them available on Spotify or Pandora or the like--these services acquire their music by means of licensing, are not reliant on user uploads as far as I know, and has nothing to do with iTunes. Most likely your friend is uploading his ripped music to some kind of private (or possibly public) database where other users can then download it--which, by the way is illegal. That's called piracy, and uploaders of such materials face much more punitive charges than downloaders.