Thanks for your question. Yes, the wires are in the wall. More recently, I've taken to having a recessed box built into the wall so that the front of the television is flush with the wall. A little extra work, but a very clean result for clients! : )

It is a lovely room in terms of color choices and fabrics, however, I have a personal complaint regarding the set up of the room. I understand the client probably wanted a Television Room rather than a Family Room, so that is why the only seating option is to face the Television. I would have preferred to see a family room that doubles as a television room -- that is, seating that allows the occupants to face one another as the default, and to face the television as an alternative.