I do love the existing fireplace but agree that the TV enclosure feels odd/outdated. If you really feel out of sync with your fireplace I would look up "modern Spanish style fireplaces" to get some inspiration that better suits your home. I get what you're trying to communicate with your inspiration posted above but I don't think it's truly hitting the mark.

Here are more photos of the rest of the room if that helps. The photo of the fireplace is from when previous owners were moving out so isn't a great one.

A photo of the fireplace today as we have the room decorated (ignore messy coffee table!)

So, looking at your idea, you are going to need to figure out what material to cover the wall. If you come up with a facing that you think you might like, I may be able to show you how it will look. Here are some mockups to get your stimulate your imagination:

Large Format Ionic Copper Tiles

Chevron Pattern Tiles

Ledger Stone

Concrete

Nothing

Is this a wood burning fireplace or gas and does it provide heat frequently or only when the power is out? or is it an electric fireplace? Do you actually use it or is it decor only?

If any part of the fireplace or firebox is cracking, then I suggest having an inspection by a pro to make sure the chimney is safe to use as is before you invest heavily in the firebox and room rennovation around it. It may be that you need to line the chimney with triple wall pipe to use this as a wood burning fireplace or you may need to rethink the fuel and choose a gas or electric fireplace.

Thank you all for the comments. There is no chimney; it's vented. It is not wood-burning. Gas that comes on with a flick of a switch. It gets quite hot (and, yes, as part of the renovation, I am having it checked out as to whether it's set too hot and whether the venting is properly working). We use it frequently.

@soonermagicmama vent and chimney mean the same thing, so if it is vented, it has a chimney. Whether that chimney is a metal pipe or built from masonry is a separate issue. From what I can see, it appears to be a wood burning fireplace with a gas log installed. It could also be a vented gas fireplace, but it's hard to tell from the pictures. Seeing as it appears to be installed on an inside wall, the chimney (or vent) would go straight up through the roof.

When I first began working on the mockups I had already observed the gas logs inside the fireplace as you can see in this blurry blowup. It does not look to me like a gas fireplace, it looks more like a wood burning fireplace with a gas log installed. This is a bit technical, but it does make a difference on what you can and cannot do around the fireplace.

For example, if it is truly just a gas fireplace, you could probably remove the hearth (not that you need to) and you may be able to have combustible material installed right up to the fireplace opening. If it is a wood burning fireplace that has a gas log installed you would be required to keep the hearth and have only non-combustible material within 8" on the sides and 12" at the top of the opening.

If it is important to you to know what you have, post a couple closeup pictures and I'll help you identify it. I need to see a picture like the view below (but clear) and one looking up at the top inside the fireplace where the damper would be.

There is no chimney; it is not wood burning; I turn it on with a flick of a switch. We've had read chimneys with real wood-burning fireplaces (loved the authenticity) in all other homes we've owned. This is not that.

What a shame. Your current fireplace is nicer than any of the other examples shown. All the rest already seem dated and something I would demo, yours is beautiful and timeless.

Nice shelf styling. on the right side, I'd swap the blue vase with the silver one to mix it up a bit. If your budget allows, can you buy one of those tvs that have a frame and look like a picture when you're not watching them? I like your fp and would not change it b/c I think it goes well in your very pretty house.

What through me off is you said "it's vented. It is not wood burning". I think what you might have is and "Unvented gas fireplace". It will be important to know exactly what it is in order to get the correct clearances to combustible so people in this forum will know what recommendations will be appropriate. Maybe you can post the pictures I asked for, it would be helpful. If it is a prefabricated unvented gas fireplace, it will have an owner's manual that spells out all the requirements.

Check out this idea

Temporary solution - paint the frame around the tv either the same blue color as the wall or black, so that it disappears.

Hansen Wholesale - my apologies. I missed that you asked for a photo. Here it is. The top of the fire box is solid. The cylinder on the side is what I think is the vent ... but maybe it is ventless after all? I know my builder on this small renovation (who did the extensive renovation for the previous homeowner and put this in) said I do need a surround that is not combustible

Tfitz - you are so on track! We are going with the frame TV that displays art when not in use. Hubby and the electronics! I appreciate the shelf styling tip .... making that swap now!

Everyone else - I think I've been talked into living with this surround. But the pulling away from the wall has to be fixed because it looks so bad!

Interesting fireplace. That vent on the left side is an outside air duct, not an exhaust vent. If there is no vent at the top and it is solid as you have described, then this is a ventless fireplace. I've never seen one constructed from masonry with an outside air duct. Not sure there are even any building codes that provide rules for such a fireplace, but obviously it passed inspection (assuming you did have an inspection).

On to the real question: I love the idea of the art TV. Here's a Samsung Framed Art TV shown with a black frame. I added a Custom Arched Wrought Iron Fireplace Screen to tie it in.