No, it's not science fiction at all.
I've watched ferrofluids being used in defence research agency laboratories for purposes that are truly mind-boggling. I've also used a specific ferrofluid at uni in cell separation techniques and red blood cell research although there are a fair number of types in stock with slightly different properties.
In general, ferrofluids behave exactly as you've probably seen on the web. I agree that it is hard to believe some of the clips you may have seen on the internet, but ferrofluids do respond to magnetic fields in the manner shown.
You're not alone all the same - the first time I was shown the behaviour of ferrofluids in magnetic fields, I was almost dumbstruck myself.