Satoru Iwata, Nintendo's president, has confirmed that that the Wii-U will not support DVD or Blu-Ray, because enough people already have enough devices that are capable of playing DVD's and Blu-Ray discs, and that they didn't wanna increase the cost by implementing that functionality due to the patents related to those two discs. This seems like they didn't wanna pay Sony for Blu-Ray support and decided not to have it in the game.
The Wii-U will use high density optical discs instead.
In My honest opinion, this is a huge step back for Nintendo. You can't automatically assume everyone has a standalone DVD or Blu-Ray player. Game consoles nowadays all have Netflix and Hulu support, but people might just wanna go to the nearest Redbox machine and get a DVD or Blu-Ray for $1 per night, and just pop the disc in and watch the movie on their video game console. No. Not if you have a Wii-U because that functionality isn't there.
Also, What will this say about the quality of the HD capability? Will "high density optical discs" be anywhere near Blu-Ray's quality?