"Early this morning, SONIC Digital media software announced they will be providing Nintendo with its CinePlayer CE DVD Navigator, a software that will allow the Wii to play DVD movies. This comes amid conflicting reports, and is the first confirmation of a Wii’s DVD playability in markets outside of Japan.
The software isn’t expected to be released until sometime late 2007."
Since Cineplayer CE DVD Navigator is a software, we should be able to download this upgrade in the Wii channels next year. It seems that the Wii would've been priced more at launch because of the licensing fees to provide this player into each Wii.