I think your idea is a good one and maybe consider an electric fireplace for esthetics. built in shelving and cabinetry always add to a home..can you send a current picture, that picture with that awful furniture is hard vision..

Builtin shelves that will house the tv.

If keeping couch in front box in bottom with a countertop on hinges to lift up for hidden storage then shelving above.

Or if move couch, a built in or closet with doors.

Or drywall it & make it accessible from other room.

A skilled woodworker can make that look entirely planned. Do a combination of closed cupboard and open shelving. Set the tv in there.

I like idea below

Thank you everyone for your ideas! I like the idea of doing some sort of built in, but I'm not sure how to pull it off without it looking strange. I've never seen a recessed built in right in the middle of the room. My contractor can build anything, but isn't good at coming up with an idea. It's a small, starter home type house, so I don't want to invest in a cabinet designer. Any suggestion on where to look for finished examples?

Put some doors on it and use it as a closet?

I like the idea of using it as a closet, but I need that wall for the TV. Is there a way to do both? I know a previous commenter mentioned having the doors open from the other side, which is something I'm going to investigate further as well.

What's the depth and width of the alcove?

I'm not home to get the exact measurements, but my coffee table that I'm using as a TV stand for fits in it completely. The 46" TV has plenty of room in other side. Not sure if that helps give you an idea.

You could likely do something like this using unpainted stock cabinetry from Home Depot or Lowes that was trimmed out appropriately. Stock cabinetry used as the foundation is a great cost saving way to get a custom built in look.

Drywall it out of existence. Your room needs more wall space, not more furniture layout issues.

I think a large stuffed grizzly standing in there would be perfect!

Actually I like the stock cabinetry option- make it look like it's supposed to be there.

It is odd to have it in the middle of the room, so instead of a full built-in, what about some very natural-looking wood shelves all the way across (no flanks or back)? Literally just the wood -- live edge would look cool if you have a good source! But that kind of thing is what I'd be considering, and go ahead and put a sofa back in front of it like the old owners had. Then it'll look accenting.

Here's what's in my house from 1935 - an alcove in the middle of the wall for the fireplace. Using stock cabinets in place of a fireplace to make it look built in would make add some interest and charm to your room. Since that's really the only wall to place a television, I don't think drywalling over it buys you much in terms of furniture placement. If you're happy with your current television size and it fits in the alcove, I think that's the perfect place for it.

Here's a better look after things were repainted.

I think it depends in large part on your current use of the room, and how the furniture is arranged. I could see filling it in with a piece of custom cabinetry, possibly housing a TV, or even just a bookshelf. Also, depending on your taste, perhaps expanding the bookshelf so it covers the entire wall (I could imagine a very grand wall with hundreds of books). Oh, and I know you said to disregard the furniture, but I can’t. It absolutely frightens me.

Please provide an address for the home’s prior owners. I need to go over there and shake them real hard.

Here's a Pinterest page chock full of inspiration and ideas like this one . . .

Or this one . . .

https://www.pinterest.com/pin/274649277248049667/?lp=true

BeveryFLADeziner gave you a terrific furniture layout. You've now got great opportunity to turn what you've been considering a major liability into something wonderful.

I know this is a bathroom, but in a rush it is all I could find to illustrate what I would do. Lighted glass shelves for display and then wall mount the TV on the wall right of the opening, or on an articulated arm in the right side corner.

Thank you so much, everyone! I appreciate all the help.

I love built ins but they are not for everybody. Love the ideas of a fireplace too. You could alsou drywall over the livingroom side of it then blow out the back and add doors it to use as a closet or built in shelving for the room behind it.

Today I saw this picture and want to share

The alcove is painted in different color, that makes him poped up.

I really like that picture you just shared. I wonder if it would work well with our narrower alcove. I like how it gives the TV a real home without eating into the living space.

What is on the back side? Would that be a place for the door and dry wall the living room wall. You have a closet and the wall you need.

Drywalling it and accessing it from the other side is another option I'm considering. I need to double check if it is completely located in the bedroom behind the living room or if it straddles the door into the bedroom.