The bronze statue shows the Bee Gees as children between the ages of nine and 12.
The Bee Gees sold more than 200 million albums worldwide in a career spanning five decades.
The ceremony was the culmination of a five-year campaign, spearheaded by the late Bee Gees singer Robin Gibb.
The Bee Gees singer died of kidney failure in May, aged 62, following a battle with cancer and pneumonia.
The Bee Gees childhood home in the Isle of Man has been celebrated with the installation of a blue plaque.
Steps' Tragedy - the current number one - is the 10th Bee Gees-penned song to make it to number one.
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Barry Gibb has unveiled a statue of the Bee Gees in the Australian town where he spent part of his childhood.
Bee Gees songs are set to dominate the top of the singles chart this weekend, taking two of the top three places.
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It's spelled L-E-E-V-E-E-S. Think of the Bee Gees, if they were Jews.
After the Bee Gees, though, it took 24 years for another artist to claim the top two spots on the Billboard Hot 100.
It seemed, in the mid to late 1990s, that every pop group on the planet had to cover a Bee Gees song in order to succeed.
Thousands watched the Isle of Man-born singer unveil the statue in Redcliffe, Queensland, where the Bee Gees signed their first recording deal in 1959.
Men have sung in falsetto for centuries from 17th-century English church choristers to The Bee Gees, Prince and today's operatic superstar counter-tenor, David Daniels.
While reading French and German at New College, Oxford, his fondness for Abba and the Bee Gees did not mark him out as a satirist.
An Abba and Bee Gees tribute event at the Grand Theatre on Friday evening has been cancelled because the artist and crew cannot reach the city.
At the height of the disco craze, the Bee Gees were number one and number two with "Night Fever" and that other song that just wouldn't die.
The Bee Gees went on to become the fifth biggest-selling pop act of all time, producing 28 albums and shifting 110 million records in a career that spanned four decades.
However, the Bee Gees revival is set to be put in the shade by dance supremo Fatboy Slim, whose song Praise You is outselling its nearest rival by around two to one.
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But with her 1979 album "Bad Girls, " Summer broke out of the disco mold as the genre, stimulated by the success of the Bee Gees' "Saturday Night Fever" soundtrack, was feeling a backlash.
While they would never again match their Seventies success, but would find new fans - and a great deal of money - as boybands and new pop groups fell over themselves to cover Bee Gees tunes.
Other selections included the original 1949 cast album for "South Pacific" and the soundtrack to the popular 1977 movie "Saturday Night Fever, " starring John Travolta and featuring the Bee Gees, which revived the disco craze.
Other recordings chosen include the soundtrack to the popular 1977 movie Saturday Night Fever, starring John Travolta and featuring the Bee Gees, which revived the disco craze and the original 1949 cast album for South Pacific.
And when, inspired by the experience, his spoof band, the Hee Bee Bee Gees, reached number two in the Australian charts with their Meaningless Songs in Very High Voices, Deayton decided comedy was the life for him.
The Brothers Gibb -- calling themselves the Bee Gees -- soared to renown as one of the most successful British groups after the 1977 film "Saturday Night Fever" starring John Travolta was built around the group's disco songs.
Other artists, such as the Jellydots, Johnny Bregar and Sam Hinton, also are producing music for kids that break the mold, whether it's with indie-rock riffs, full instrumentation, uncanny animal mimcry or a sample from a Bee Gees' song.
Inducted into the Rock and Roll Hall of Fame in 1997, the Bee Gees have sold more than 200 million albums, and their soundtrack album to "Saturday Night Fever" was the top-selling album until Michael Jackson's "Thriller" claimed that distinction in the 1980s.
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