I think shiplap has sailed, but if you like it, go ahead. When you say "close out" do you mean just drywall over the recesses? Because that seems like it would be a waste of space. Maybe built ins of some kind over there? What's behind that wall? Can you capture the space in the adjoining room? The more I look at the photo, the more I see how slightly odd the layout is with the corner fireplace - the edges aren't symmetrical, are they? Hmm. I think that might be what throws that corner off a bit and I'm honestly not sure how to fix it.

I like shiplap and have had it in a previous home. However i don’t see a need for it here. i agree withe your plan of closing up the space where tv is and moving it to stair walk but shiplap wouldn’t seem to work in that room jmo

It’s a lovely room

Thanks! Behind the tv is a closet for the guest bedroom. So if I close it up on this side I can make closet bigger. And yes fireplace is a bit off. I’m thinking I’m doing drywall and put an accent chair. Thanks for the suggestions.

Viewing the TV from the side as you turn the corner is never attractive so if you can recess the TV in some form that would be visually attractive.

I would mount vertical lathe strips on the wall of your room instead of shiplap. Less labor, less $$$ a bit more classic IMO.

That’s also a great idea and less work!!!

Frame TV’s are mounted so flat against the wall mounting one on the wall you suggest wouldn't be an issue. No need to recess , mine looks like a piece of art it’s mounted so flush against the wall.

I like the idea of moving the tv away from that wall. It’s plenty busy enough with the fireplace right there. I also think covering the insets is a good idea and those vertical furring strips look great!

Do you have another choices for a tv placement?

Really appreciate the ideas here! No. That’s the only place I have in mind