Will you use the fireplace? Maybe 3-4 times during the winter months for ambiance? Frame it out and sheetrock over it. Put the TV on the hearth portion. It will still be there in case a future buyer wants it.

It might be better to just put it to the left of the fireplace on a TV console. Notice how in this photo we have the TV to the right? You can mount it on the wall then.

Alpine Ski Home · More Info

Alpine Ski Home · More Info

That fireplace is way too high for the TV. Your parents will make some chiropractor very wealthy if you put it there. I'd put it just to the left of the fireplace, at eye level.

You can buy a sofa and two or three chairs and put everything in the same places they are now except the chair that's to the left of the fireplace since that's where the TV should go. Make the third chair a swivel and put it with its back to the window. Square up the other two chairs and put the TV on a swivel also. Then everyone can watch at the same time.

What about a sectional? starting under the window and running parallel to the wall. And I agree, Put the T.V. to the left of the fireplace on a stand. You could add a sofa with built in recliners. There are many new styles that do not look bulky and have nice clean line.