Spotify has announced a major new update to its desktop software this morning, with the key new features focusing on social and music management. Spotify now uses Facebook Connect to let users see what their friends are listening to and share their playlists on the social network. Equally significant are the music management aspects, which let users import their existing MP3 collections and iTunes playlists into the Spotify client, bringing all their music into one place. Spotify’s Facebook functionality brings it into line with Pandora, which is also using Facebook Connect. However, we sense the music management aspects could be equally important as positioning the service as a genuine rival to iTunes.