What is a hds file and how do I open a hds file?

An HDS file extension is used by Microsoft PlayReady, a Digital Rights Management program for streaming online video. HDS files are most commonly encountered during Microsoft Silverlight software upgrades, which can cause Netflix streaming to malfunction. PlayReady is a content protection technology from Microsoft that includes encryption, output protection and Digital Rights Management (DRM). At times it may help it to clear the PlayReady cache by deleting the .hds file. Microsoft PlayReady framework allows the app to specify the license store location (also called Hased Data Store or HDS) for any session. This default HDS is also specific to the app using the framework, so that licenses stored in it are isolated by app. The default HDS also includes Indiv data and any persistent licenses that may be acquired. For this reason, Microsoft recommends that it not be deleted.