Add more photos of the room, please.

Additional photos will help provide appropriate suggestions. First, move the sofa on to the rug, forming a entry hall behind it from the front door.

It looks like you can add a chair to the right of the T.V. facing back towards the sofa that is moved forward onto the rug, a coffee table, a larger ceiling fixture, and draperies.

If I move the couch close to the area rug to create entryway where do I put the other couch?

To the left or right perpendicular to the sofa away from the walls a bit over the edge of the rug.

So I moved the furniture around this is what it looks like now

That space is too small for two bulky couches. So sell one to help fund the new furniture that you need. Move the one couch off of the wall and into the center of the room on the rug to create a natural walk way behind it. And then get two appropriately scaled accent chairs with a coffee table in front of the couch.

Put the front feet of the couch on the rug. Move the rug back if you need to. Put the other couch perpendicular to it, also with the feet on the rug.

What is behind you in these pictures?

One sofa can go in front of the windows, toward the rug forming an L with the sofa that is facing the television. Both sofas need to have at least their front feet on the rug. The natural hallway created with the one sofa needs to be about 4' wide. The sofa in front of the windows can have a narrow table behind it for lamps and décor. A coffee table/ottoman in front of the sofa facing the television should be placed 16" in front of the sofa. Please post another photo taken with your back to the windows and facing in to the room.

What Vistas said. The couch needs to move up more so it is comfortable to walk behind it. The other couch needs to form an L with it.

What if I leave the couches the way they were and just buy different bigger rug, add two accent chair by the big window and maybe curtains, pictures and some modern book shelves?

I think this is better. The rug is the right size for the space. Everything was too spread out and stuck to the walls before. If you don't like the couch cutting off the room, move it under the window instead. Or replace it with chairs.

Now you can look at more furniture. I would add a coffee table or ottoman and a side table between the two couches. A console table behind the couch would be nice so you don't have to start at the back or it. Center the media console on the big couch.

According to what I see in the picture, you have great taste but the room needs help. I would start off by pulling the couch off the wall and placing it's so it's in between the door and the window. Then the chair could go in between the couch and media center. In the middle of that sort of conversation area put a coffee table with some decorative coasters and a small plant. Then, add some throw pillows and curtains ( make sure they go up to the ceiling and touch the floor for the illusion of height). In the corner a blanket basket or a tall plant would be a nice touch to the room. Then on the wall where your couch currently is, get a sideboard and dress it up with two matching tall lamps on both sides. Over top of that either make a gallery wall or one large piece of art. In the corner where your chair is near place another tall plant or vase. Make sure you have a nice matching color palette while buying decor and furniture. I hope this helped you and good luck :)

Thank you all for your suggestions.