Rumors of MySpace integrating Facebook Connect have circulated since October. And now it looks like they’re coming true: MySpace’s Fan Video site allows users to login with either MySpace or Facebook accounts.

The Fan Video site itself takes professional music videos and inserts your profile picture prominently. The site also features sharing capabilities to post the videos to MySpace, Facebook or Twitter. Additionally, you can create videos for your friends using their profile pictures, and you can choose these friends from your MySpace or Facebook friend lists (depending on which account you used to sign in).

Not a super-useful application (more fun than sheep throwing, I guess), but is this a harbinger of things to come for MySpace? Are they ready to concede the social networking arena to Facebook?

Side note here: although Facebook has eclipsed MySpace in terms of traffic, MySpace still edges out Facebook in ad revenue. So the race isn’t already lost. May be close, though.

via