Originally produced under the titles Harlem Nights and Coonskin No More..., Coonskin encountered extreme controversy before its original theatrical release when the Congress of Racial Equality strongly criticized the content as being racist, although none of the group's members had seen the film. When the film was finally released, Bryanston gave it limited distribution and initially received negative reviews. Later re-released under the titles Bustin' Out and Street Fight, Coonskin has since been reappraised, with many considering it to be one of Bakshi's finest works.
Brother Rabbit (voice of Thomas), Brother Bear (voice of White), and Preacher Fox (voice of Gordone) decide to pack up and leave their southern settings after the bank mortgages their home and sells it to a man who turns it into a brothel. Arriving in Harlem, Rabbit, Bear, and Fox find that it isn't all that it's made out to be. They encounter a con man named Simple Savior, a phony revolutionary leader who purports to be the "cousin" of Black Jesus, and that he gives his followers "the strength to kill whites." In a flashy stage performance in his "church," Savior acts out being brutalized by symbols of black oppression—represented by images of John Wayne, Elvis Presley and Richard Nixon, before asking his parishioners for "donations." When Rabbit attempts to stir up anti-revolutionary sentiment, Savior tries to have him killed. After Rabbit saves his life via reverse psychology, he and Bear kill Savior. This allows Rabbit to take over Savior's racket, putting him in line to become the head of all organized crime in Harlem. But first, he has to get rid of a few other opponents. Savior's former partners tell Rabbit that if he can't kill his opponents, then they'll kill him instead.
Rabbit first goes up against Madigan, a virulently racist and homophobic white police officer and bagman for the Mafia, who demonstrates his contempt for African Americans in various ways, including a refusal to bathe before an anticipated encounter with them (he believes they're not worth it). When Madigan finds out that Rabbit has been taking his payoffs, he and his cohorts, Ruby and Bobby, are led to a nightclub called "The Cottontail." A black stripper distracts him while an LSD sugar cube is dropped into his drink. Madigan, while under the influence of his spiked drink, is then maneuvered into a sexual liaison with a stereotypically effeminate gay man, and then shoved into women's clothing representative of the mammy archetype, adorned in blackface, and finally shoved out the back of the club where he discovers that Ruby and Bobby are dead. Then, while recovering from his delirium of being drugged, shoots his gun around randomly, and is shot to death by the police after shooting one of them.
Rabbit's final targets are the Godfather (voice of an uncredited Al Lewis) and the Mafia, who live in the subway. The contract for killing Rabbit is given to Sonny (voice of Richard Paul). Showing up outside Rabbit's nightclub in blackface and clothing representative of minstrel show stereotypes, Sonny winds up shot multiple times by Rabbit before dying in an explosion caused by a car crash. His body is cremated and taken back home, where his mother weeps over his ashes. Bear becomes torn between staying with Rabbit, or starting a new, crime-free life. Bear decides to look for Fox in order to seek his advice. Upon arriving at Fox's newly acquired brothel, Bear is "married" to a girl he, Fox, and Rabbit met during the fight with Savior's men. Under the advisement of Fox, Bear becomes a boxer for the Mafia. During one of Bear's fights, Rabbit sets up a melting imitation of himself made out of tar. As the Mafiosos take turns stabbing at the "tar rabbit," they become stuck together. Rabbit, Bear, Fox and the opponent boxer rush out of the boxing arena as it blows up. The live-action story ends with Randy and Pappy escaping while being shot at by various white cops, but managing to make it out alive.
Coonskin uses a variety of racist caricatures from blackface minstrelsy and darky iconography, including stereotypes featured in Hollywood films and cartoons, presented in a manner that was intended to satirize the racism of the material and images rather than reenforce it. In the book That's Blaxploitation! Roots of the Baadasssss 'Tude (Rated X by an All-Whyte Jury), Darius James writes that "Bakshi pukes the iconographic bile of a racist culture back in its stupid, bloated face, wipes his chin and smiles Dirty Harry style. [...] He subverts the context of Hollywood's entire catalogue of racist black iconography through a series of swift cross-edits of original and appropriated footage." The film also features a number of equally exaggerated portrayals of white Southerners, Italians and homosexuals, also presented in a satirical context. According to Bakshi, although producer Albert S. Ruddy was "fine" with the satire, it seemed that no one really knew what Bakshi was up to as he worked on the film. "Every one thought the picture was going to be anti-black. I intended it to be anti-idiot."
In his review for The Hollywood Reporter, Arthur Knight wrote "Coonskin is not anti-black. Nor is it anti-Jewish, anti-Italian, or anti-American, all of whom fall prey to Bakshi's wicked caricaturist's pen as intensely as any of the blacks in his movie. What Bakshi is against, as this film makes abundantly clear, is the cheats, the rip-off artists, the hypocrites, the phonies, the con men and the organized criminals of this world, regardless of race, color, or creed. The film is most critical in its portrayal of the Mafia. According to Bakshi, "I was incensed at all the hero worship of those guys in The Godfather; Pacino and Caan did such a great job of making you like them. [...] One thing that stunned me about The Godfather movie: here's a mother who gives birth to children, and her husband essentially gets all her sons killed. In Coonskin, she gets her revenge, but also gets shot. She turns into a butterfly and gets crushed. [...] These guys don't give you any room."
Coonskin uses a variety of different styles of artwork, filmmaking and storytelling techniques. Film critic Leonard Maltin wrote that Coonskin \"remains one of [Bakshi's] most exciting films, both visually and conceptually.\" The use of a live-action frame story is a satirical reference to Walt Disney's Song of the South. These sequences were shot in Oklahoma. The El Reno state prison was one of the locations used during filming. A week after Bakshi and his crew left, the prison was burned during a riot. The film also uses live-action photographs and footage as backdrops for animated sequences, a filmmaking technique Bakshi previously employed in Heavy Traffic. The filming of live-action footage also helped contribute elements to the film's story. According to Bakshi, while shooting live-action background footage on Times Square at 4 A.M., a group of prostitutes came out and waved towards the camera before being chased off by the police. \"That happened by accident, but we put it in the film. I never could have written anything that real in the script.\"
Of the writing process, Bakshi stated \"The way I worked was that everyone recorded the script. But then I would change my opinion over the course of the year I made the film. I read every black culture book I could get a hand on. Then my opinion on these matters would change. I ran my own studio—I had no boss. I was the director and the writer. I would write and rewrite and record all year. I was always in a state of flux in my films; the process was as important as a finished project.\" In another interview, Bakshi stated \"In Coonskin, I was able to stop an entire movie and integrate Miss America poems. I would do two or three movies within a movie. I would use subtext of ideas and go with it wherever I felt it should go. That, to me, is extremely exciting – improvisational almost poetry, in a sense. I love Bukowski.\"
When the film was finished, a showing was planned at the Museum of Modern Art. In a 1980 interview, Bakshi stated, "the museum had seen the film and loved it, a breakthrough in animation. They set up a very special night to screen it for film people." The Congress of Racial Equality (CORE) surrounded the building before anyone had seen it yet, in a protest led by Al Sharpton. According to Bakshi, "The room was filled, although there weren't many protesters from CORE there, eight or nine. Screaming, 'You can't watch this film!' People pulling people out of their seats. It was that kind of night. The audience was very frightened. They were being attacked verbally throughout the movie. People kept running up and down the aisles in pitch blackness."
In a 1982 interview, Bakshi stated "I had finished the film on a Friday, I screened it in California for the museum on a Monday, and on Wednesday when I came to New York to screen it there were pickets there. I brought the film on the plane with me, and no one had seen it but my animators and two guys from the museum. But there were pickets there, shouting that the film was racist. I never saw anything so set up in my life, but the press never picked up on that."
Bakshi asked Sharpton why he didn't come in and see the movie. In response, Sharpton announced, "I don't got to see shit; I can smell shit!" In a 2008 interview, Bakshi stated that "I called Sharpton a black middle-class fucking sell-out, and I’ll say it to his face. Al Sharpton is one of those guys who abused the revolution to support whatever it was he wanted." According to Bakshi, "[Sharpton] brought in some bruisers, and I could hear them asking, 'Should we beat him up or cool it?' 'Ah, let's watch the film.'" "They were geared to dislike it" says Bakshi. "They were booing at the titles! I guess it was an easy target. Or they were paid to do it. I don't know. It was very unusual. They were booing at something they hadn't even seen. This was interesting to me." After the screening, Bakshi states that Sharpton charged up to the screen, but "people didn’t want to follow Sharpton up the aisle. His own men! He was screaming to me on the podium and turning around to them, saying, 'Are you guys coming up?' But they didn’t want to, because they loved the movie."
Gregg Kilday of The Los Angeles Times interviewed Larry Kardish, a museum staff member, and Kardish recalled that "About halfway into the film about ten members of CORE showed up. They walked up and down the aisles and were very belligerent. In my estimation they were determined not to like the film. Apparently some of their friends had read the script of the movie and in their belief it was detrimental to the image of blacks [...] The question-and-answer session with Bakshi that followed quickly collapsed into the chaos of a shouting match.
According to animation historian Jerry Beck, he did not recall any disturbance during the screening, but there were racist catcalls during the question-and-answer session, and Bakshi's talk was cut short. "It wasn't much of a madhouse, but it was kind of wild for the Museum of Modern Art." According to Bakshi, "there were five people who were very angry at me and were very vocal. There were two hundred people sitting in their seats that applauded the film tremendously. It's always the five people in a room that want to scream, and those are the ones that are going to be heard. That's what really happened. I laughed at the controversy. According to Ruddy, he had been told that "there were about four hundred people there. I think ten or fifteen blacks took objection to some of the things, and they had somewhat of a scream-out with Ralph at the end [...] It was also for the board of the museum. They loved it. They thought it was a classic."
Following the showing, the Paramount Building in New York City was picketed by CORE. Elaine Parker, chairman of the Harlem chapter of CORE, had spoken out against the film in January 1975. She told Variety that the film "depicts us as slaves, hustlers and whores. It's a racist film to me, and very insulting [...] If it is released, there's no telling what we might do." The Los Angeles chapter of CORE demanded that Paramount not release the film, claiming that it was "highly objectionable to the black community. The NAACP had written a letter describing the film as a difficult satire, but supported it. Bakshi has stated, "The film was positive black in a huge way. It shows what white people think of blacks. I'm not a racist. I couldn't understand it and I still can't. If I were a racist for the Ku Klux Klan, I could understand it. But how could I understand the booing?"
With Paramount's permission, Bakshi and Ruddy got contractually released, and the Bryanston Distributing Company was assigned the rights to the film. Two weeks after the film opened, the distributor went bankrupt. According to a May 1975 issue of The Hollywood Reporter, Ben Gage was hired to rerecord Barry White's voice track, in order to remove "racist references and vulgarity. Coonskin was given limited distribution, advertised as a blaxploitation film. Roger Ebert wrote in his review of the film:
Coonskin is said by its director to be about blacks and for whites, and by its ads to be for blacks and against whites. Its title was originally intended to break through racial stereotypes by its bluntness, but now the ads say the hero and his pals are out "to get the Man to stop calling them coonskin." The movie's original distributor, Paramount, dropped it after pressure from black groups. Now it's being sold by Bryanston as an attack on the system. [...] Coonskin is provocative, original and deserves better than being sold as the very thing it's not.
According to Bakshi, when Martin Scorsese was filming second-unit material for Taxi Driver near Times Square, a smoke bomb was thrown into a theater showing Coonskin, and Scorsese sent Bakshi footage of audience members running out of the theater. "I didn't know whether to laugh or cry, but it's okay now."
In a 1982 article published in The Village Voice, Carol Cooper wrote "Coonskin was driven out of theaters by a misguided minority, most of whom had never seen the film. CORE's pickets at Paramount's Gulf + Western headquarters and, later, a few smoke bombs lobbed into packed Broadway theaters were enough; theater owners were intimidated, and the auxiliary distributor, Bryanston, couldn't book the film. Bye-Bye Coonskin.