Is the door to the left the main entrance or is that to a deck? Is the room to the left the kitchen? Do you need a table for eating?

Can you float a sofa facing the wall, then make an L shape with the sofa and chairs? Then mount your TV on the wall next to the fireplace? Would you have room to do that? It's hard to tell without dimensions.

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Assuming the chair is 3' wide by 3' deep, one may conclude that the room is around 11' by 17'. Since the tv and the fireplace may be focal points, float the seating arrangement in front of them. Move them around until you have an arrangement that works for the flow of the room. If your family watches the tv more than the fireplace, face the couch toward the tv, and the chair toward the fireplace. Make sure seating arrangement is close enough so you can have a comfortable conversation with each other.

I agree with Beverly's arrangement....place the TV on a low console put in pretty side curtain panels that match the sliders so you have continuity in the area and install remote cell shade in the one window so you can watch TV without glare.

This reminds me of my first condo. The layout was so similar. I had a sofa and two small chairs, but I always wished I had a sectional to fill up the space and accommodate lots of seating (and laying around!) The sofa shouldn't have a very high back or too overstuffed as then it will look crowded. Plenty of large (20"x20" throw pillows will do the trick) Consider a tv easel for easy locations and optimum viewing in front of the window and a long console behind the sofa along the stairs. You still have plenty of room for a small scaled lounge chair and footstool and to have easy access to the terrace and dining room. I'm not a big fan of tiny furniture in small spaces. Less furniture but bigger is so much more functional. Large colorful art over the fireplace and over the sofa will give you the color if you can't paint. Keep the window treatment simple, like off white sheer panels, but don't skimp, they should be full and luxurious (3x the width of the window even if you keep it opened). Hope this helps.