You could move tv to another wall & make a bookcase there.

Bookcase

bookcase it

Thank you all for your ideas! I will post more photos later, but that is the only space i can have the TV. I was thinking of covering the top part of the space and leave some space on the bottom and do built in cabinets, this way i can buy a bigger TV. Not sure how that will look!

if is the only space you have a built in is a good idea

I recently had a client with a similar niche that was in an office area of their home. We had some custom shelves made using industrial pipe and beautifully stained wood to create shelves in the niche. Some of the furniture they had already had the same style (restoration hardware). This idea may work for you, as you could elevate that TV a bit more and still have room for some shelves above and one below the TV for accessories and books. The second photo shows and entire wall we created even more shelves and a desk area.

Does the TV have to go in that space?

What do you guys think about having that place filled up/covered up basically. That is the only space I have for TV and right now I can only fit TV up to 50 inches and would like a bigger TV. Any ideas?

leave the bottom as custom shelving with an outlet, and build out the top.

This is what the rest of the space looks like. Ignore the brown couch on the left, that will be removed and behind it, its a double sided fireplace. The picture was taken at night so its a little dark! I have ordered two small ottomans to put on the other side of the table. The TV space and the space next to the couch is something I need to figure out. So any ideas, I will appreciate it! Thank you. The picture looks yellow, but walls are white!

put the tv where the brown couch is. fill in the niche and paint..its the best way.

can i see the wall the brown sofa is on?

If you raise and mount the TV in the middle of the nook, you could install some nice shelves under it to store electronics and also add some styling pieces such as books, picture frames, etc. A small bookshelf is also another great option and you can put the TV right on top of it rather than having to mount it.

If you're feeling really crafty, you can build the shelves yourself. If you type in "DIY shelves" on Pinterest, a ton of great options come up. I particularly envision something like these floating shelves.