How about a thin desk (12 inches or so deep) to hold your phone and a few floating shelves above.

Nice sectional and great job with all the colours in the room! I would flip your sectional so the three seat sofa sits against the large wall. Add a large piece of artwork above the sofa (no more than 8" above the top of the sofa) or continue adding similar cinema pieces to create one large display. Centre the display over the sofa section of your sectional. Move the single chair to face the sectional rather than the TV for conversation. Add a cabinet/small table/low book shelf below your birch tree artwork. Finally, pull the area rug out a bit. The back legs of the sectional do not need to be sitting on the area rug.

Thanks Emily and kicksychick this is giving me some good ideas.

Great colors you're working with! I think I'd pull the sofa back a bit - just so the back of it aligns with the right side of the light switch on the wall you're decorating. Then I'd center the large black armoire opposite the windows, as you're getting too visually heavy on the FP end of the room. Heavier draperies will provide another visual balance factor for the armoire. Buy additional cinema decor items and flank the FP/TV with two groupings of it (center of group at 60" above the floor.) Add movie posters or black and white photos of some movie stars on both sides as well. You can add a pair of matched credenzas below the decor, and get a second matching chair so you can flank the FP or armoire with a pair of them. If the chaise of your sofa is detachable, you could center the sectional on the FP/TV, and put the chaise under your tree picture on the right, keeping the single accent chair. That would save buying the second chair.

Agree with movie poster or black and white movie starsA natural wood top narrow table bar height for phone would look nice if keep the same layout ( like trying the rearrange.) Add popcorn red white machine, or just containers for pop and theme expansion.

decoenthusiaste - love the ideas just that the picture shows what is behind the couch, so i can't actually move it back any farther, as it is a walk through to the outside we have thought about making the door an actual window and not door since we do have another entrance outside. see the picture i have attached.

http://houzz.com/photos/5827173 See you have popcorn idea in other part of room- great minds think alike lol

bears72 when you said add a popcorn maker i was thinking i am one step ahead of you.. LOL

groveraxle i love that table there and the posters, this is great to see it like that. The TV is a 55" and the armoire is a computer desk and the TV wouldn't fit in it.

24" would be plenty for a walkway. However, now that I'm seeing what's behind the sofa I'm thinking you have another wall to work with. A low pony wall instead of the bannister and spindles would open your dining room for better viewing of the TV. I'd build it just to
the height of the door frame in the downstairs area, but with kids you might want it higher.
The door to window conversion might be nice unless you have a patio or deck just outside that slider.

Well, it was an idea. Not a good one, but an idea, anyway. Thanks for the explanation, dlenamon.

Just make sliders of the bottoms of plastic milk and juice jugs and try some of the suggestions. You may be pleasantly surprised at the change!