Shares of Youku Tudou (UNKNOWN:YOKU.DL) rose over 3% last Wednesday after announcing an exclusive partnership with Hong Kong Television Broadcast. Despite the great terms Youku has received under this deal, the company's stock is still down 4% year to date. Why?

Even as the user-generated online video company moves towards original online programming that has helped Netflix shares and Google's YouTube, Youku Tudou still faces an increasingly competitive market. Fool contributor Kevin Chen tells us why investors need to watch out for Baidu's (NASDAQ:BIDU) iQiyi, Sohu (NASDAQ:SOHU) TV, and Youku's merger last year with Tudou.